Terex and REV Group announce strategic merger
Strategic merger set to create a leading specialty equipment manufacturer with complementary brands
TEREX Corporation and REV Group today announced that they have entered into a definitive agreement to merge in a stock and cash transaction to form a leading specialty equipment manufacturer.
The merger will create a diversified leader in emergency, waste, utilities, environmental, and materials processing equipment with attractive end markets characterized by low cyclicality, resilient demand, and long-term growth profiles. With a substantial US manufacturing footprint, the combined organization will be well-positioned to benefit from domestic demand growth.
Combining the complementary portfolios is expected to unlock significant value-creating synergies totalling US$75 million of run-rate value in 2028 with approximately 50% achieved 12 months after closing. Both Terex and REV Group say they have demonstrated their ability to successfully execute large integrations and deliver expected synergy value.
Today, Terex also announced that it will initiate a process to exit their Aerials segment, including the assessment of a potential sale or spin-off, thereby further reducing their exposure to cyclical end markets.
Upon closing of the merger, Terex chief executive officer Simon Meester will serve as president and CEO of the combined company, supported by a proven management team that reflects the strengths and capabilities of both organizations.
Mr Meester, 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.’
The combined company is expected to have approximately US$7.8 billion in net sales and an attractive combined adjusted EBITDA margin of approximately 11% as of year-end 2025, excluding benefit of synergies. The exchange ratio and the closing share prices for Terex and REV Group as of 28 October 2025 represent an implied total enterprise value of the combined company of approximately US$9 billion. Excluding Aerials and including US$75 million of synergies, it is estimated that the combined company would have an even stronger pro forma adjusted EBITDA margin of approximately 14% for 2025.
The transaction is expected to close in the first half of 2026, subject to approval by both companies’ shareholders, required regulatory clearance, and satisfaction of other customary closing conditions. Following the close, the board of the combined company will consist of 12 directors, of which seven will be from the Terex board and five from the REV Group board.
