Terex Corporation announced the completion of its acquisition of Environmental Solutions Group (ESG) from Dover Corporation. This all-cash transaction was valued at $2.0 billion, or $1.725 billion when adjusted for the present value of expected tax benefits of approximately $275 million. The acquisition is anticipated to be double-digit percentage adjusted EPS accretive in 2025, with further growth expected thereafter.
The integration of ESG, which includes leading brands like Heil and Marathon, significantly strengthens Terex's portfolio by adding a non-cyclical, market-leading business in the waste and recycling industry. ESG holds the number one position in North America for refuse collection vehicles, waste compaction equipment, and associated digital solutions. This strategic move is expected to increase Terex's total revenue derived from North America to 67% from 61%.
Terex expects to achieve at least $25 million in operational run-rate synergies from the ESG acquisition by the end of 2026. ESG's efficient operating model and low net working capital are projected to drive meaningful improvements in free cash flow accretion. Patrick Carroll, President of Environmental Solutions Group, will continue in his role, bringing extensive experience to the newly integrated segment.
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