Terex Corporation and REV Group will enter into a definitive merger agreement to merge in a stock and cash transaction to form a speciality equipment manufacturer. At the same time, Terex will initiate the process to exit its aerials segment, which includes the assessment of a potential sale. Terex’s aerials segment, Genie, has positioned itself as a trusted name in material lifts and mobile elevating work platforms (MEWPs).

Terex has been focusing its business in recent years on acquiring businesses aligned with its future in the recycling equipment markets. Between 2017 and 2019, Terex exited its mobile cranes and construction businesses while simultaneously acquiring Environmental Solutions Group, a manufacturer of waste and recycling equipment.

The merger will create a diversified portfolio in emergency, waste, utilities, environmental, and materials processing equipment with attractive end markets.

Upon closing the merger, Terex CEO Simon Meester will serve as president and chief executive officer of the combined company, supported by a management team that reflects the strengths and capabilities of both organizations.

​Simon Meester, chief executive officer of Terex, commented: “This transaction represents a transformative step for both companies. By combining our complementary portfolios and leveraging our collective strengths, we are creating a large-scale, diversified industrial leader well-positioned to capitalize on long-term secular growth trends. The transaction will unlock significant value for both Terex and REV Group shareholders and creates exciting opportunities for our team members and customers by strengthening our ability to invest in the combined business, innovate, and deliver quality solutions.”

Mark Skonieczny, chief executive officer of REV Group, commented: “Joining forces with Terex is a natural evolution of our strategy of building a stronger, more profitable, and scaled company by bringing together two highly respected organizations with shared values and a commitment to innovation, operational excellence, and customer success. We are beginning an exciting new chapter that will generate meaningful value for our shareholders, customers, and employees.”

Strategic rationale and transaction benefits

• Complementary portfolio of specialty equipment businesses – As a combined company, Terex and REV Group will offer a diversified portfolio of emergency, waste, utilities, environmental and material processing equipment with attractive end markets.
• Financial strength and flexibility – Together, Terex and the REV Group will operate from a position of enhanced financial strength with an attractive leverage position, low capital intensity, and significant free cash flow to fuel growth. This strong financial foundation will support continued investment in growth while maintaining discipline and flexibility.
• Enhanced scale and growth profile –  The transaction will enhance the combined company’s overall growth profile, creating a more diversified platform with multiple avenues for expansion. By combining complementary capabilities, the business is positioned for stronger, more sustainable growth over the long term.
• Compelling value creation through synergies – The transaction will unlock significant value-creating synergies that enhance competitiveness and reduce operating costs with $75 million of run-rate value in 2028 and approximately 50 percent achieved twelve months after closing.