Terex, Rev Group complete merger

Terex Corp. of Norwalk, Connecticut, and Rev Group Inc. of Brookfield, Wisconsin, have announced the completion of a definitive merger agreement to form a premier specialty equipment manufacturer.

The companies first announced entry into the agreement in October of last year, citing plans to jointly manufacture emergency, waste, utilities, environmental and materials processing equipment.

On its website, Rev Group describes itself as consisting of companies that design and manufacture specialty vehicles “including fire apparatus, emergency vehicles and commercial infrastructure vehicles like [trailer and truck towing] terminal trucks and street sweepers.”

Terex Corp. brands in the recycling sector include Powerscreen, EvoQuip, Finlay, CBI, Terex Ecotec and Fuchs.

Combining the portfolios is anticipated to generate $75 million of run-rate value in 2028, with approximately 50 percent achieved over the next 12 months. According to Terex, the resulting combined company features lower capital intensity and strong free cash flow.

Following the completion of the merger, Rev stock has ceased trading and is no longer listed on the New York Stock Exchange (NYSE). The combined company will trade on the NYSE as Terex Corp. (NYSE: TEX).

“The combination with Rev Group is a defining moment in Terex’s transformation,” Simon Meester, president and CEO of Terex, says. “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. We look forward to leveraging the best of both organizations and creating real value for our customers and shareholders.”

U.K.-based Barclays served as exclusive financial advisor; Washington-based Fried, Frank, Harris, Shriver & Jacobson LLP and New York-based Pryor Cashman LLP served as legal counsel; and New York-based Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor to Terex. J.P. Morgan, New York, served as exclusive financial advisor; Davis Polk & Wardwell LLP, Washington, served as legal counsel; and Brunswick Group, London, served as strategic communications advisor to Rev Group.