Terex announced it has completed its merger with REV Group, forming a combined specialty equipment manufacturer that the company says will have a broader, more resilient portfolio and improved capacity to drive profitable growth. The transaction brings together complementary product lines across specialty vehicles and equipment that serve end markets including emergency services, waste and recycling, utilities, and construction.
Terex said the combination is expected to generate $75 million of run rate synergies in 2028, with about half of that value anticipated to be achieved over the next 12 months. The company also highlighted expectations for lower capital intensity, an attractive leverage profile, and strong free cash flow generation for the combined organization, citing both companies’ prior integration experience as support for executing the plan.
With the merger completed, REV Group shares have ceased trading and REV is no longer listed on the New York Stock Exchange. The combined company will continue trading on the NYSE under Terex Corporation’s name and ticker symbol, NYSE: TEX.
Support: Terex said Barclays served as its exclusive financial advisor, with Fried, Frank, Harris, Shriver and Jacobson and Pryor Cashman as legal counsel, and Joele Frank, Wilkinson Brimmer Katcher as strategic communications advisor. REV Group said J.P. Morgan served as its exclusive financial advisor, Davis Polk and Wardwell as legal counsel, and Brunswick Group as strategic communications advisor.
KEY QUOTE:
“The combination with REV Group is a defining moment in Terex’s transformation. It creates a large-scale leader with a wide range of specialty equipment and a highly synergistic portfolio at the same time. The merger positions the company quite uniquely to accelerate profitable growth with a much more resilient top line.”
Simon Meester, President and Chief Executive Officer, Terex Corporation
