Terex Corporation announced completion of its acquisition of Environmental Solutions Group from Dover Corporation. Terex anticipates that ESG will drive increased revenue growth, free cash flow, earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, and EPS accretion.
Simon Meester, Terex President and CEO said: “We’re delighted to welcome ESG into the Terex family of businesses. ESG is a non-cyclical, financially accretive, market-leading business that will complement and strengthen Terex’s portfolio with synergies鈥痠n the fast-growing waste and recycling end market. ESG is led by a world-class management team and has a strong track record of operational excellence. We look forward to working with ESG to drive long-term, sustainable value for all our stakeholders.
Meester added that Patrick Carroll, President of Environmental Solutions Group for the past 14 years, will continue in that role. Mr. Carroll has extensive experience leading manufacturing businesses including serving as President of Terex Utilities from 2001 through 2005.
Julie Beck, Terex SVP and CFO said: “This acquisition significantly strengthens Terex’s portfolio and鈥痗reates a path for accelerated, sustainable growth. ESG has demonstrated a sustained track record of resilient, high-single digit organic growth through the cycle. Its EBITDA margin including run rate synergies is expected to add 140 basis points of margin accretion. ESG’s efficient operating model with low net working capital will drive a meaningful improvement in free cash flow accretion. And finally, Terex expects鈥瘇$25 million鈥痮f identified synergies to be achieved by the end of 2026.
Carroll said: “At ESG, our vision has always been to improve the lives of our team members, our customers, and our communities. We are looking forward to becoming part of Terex, because we see it as a great cultural fit with opportunities to expand our positive impact. We are looking forward to greater scale and access to new markets.”