Terex Corp. this week announced the completion of its merger with REV Group to form a premier specialty equipment manufacturer with a diversified portfolio and strong growth prospects.
“The combination with REV Group is a defining moment in Terex’s transformation,” said Simon Meester, Terex president and CEO. “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.”
Combining the complementary portfolios will unlock significant value-creating synergies totaling $75 million of run-rate value by 2028 with approximately 50 percent to be achieved during the next 12 months. Both Terex and REV Group have demonstrated their ability to successfully execute large integrations and deliver expected synergy value. The resulting combined company features lower capital intensity with an attractive leverage profile and strong free cash flow, the company said.
With the completion of the merger, REV stock ceased trading and is no longer listed on the New York Stock Exchange. The combined company will trade on the New York Stock Exchange as Terex Corp. (TEX).
Barclays served as exclusive financial advisor; Fried, Frank, Harris, Shriver & Jacobson LLP and Pryor Cashman LLP served as legal counsel; and Joele Frank, Wilkinson Brimmer Katcher served as strategic communications advisor to Terex. J.P. Morgan served as exclusive financial advisor; and Davis Polk & Wardwell LLP served as legal counsel; and Brunswick Group served as strategic communications advisor to REV Group.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.