Terex Corp. and REV Group Inc. have completed a $425 million cash merger, with REV Group shareholders receiving 0.9809 shares of the combined company and $8.71 in cash per share. The transaction gives Terex shareholders 58 % ownership and REV Group shareholders 42 % on a fully diluted basis of the new entity, which will continue to trade under the symbol TEX.
The combined company is projected to generate net sales of $7.8 billion in 2025 and an adjusted EBITDA margin of 11 %. When synergies are included, the pro‑forma debt‑to‑EBITDA ratio is 2.5×, and run‑rate synergies of $75 million are expected by 2028.
Strategically, the merger expands the company’s footprint into low‑cyclicality markets such as emergency, waste, utilities, and environmental equipment, while eliminating Terex’s Aerials segment to reduce exposure to more volatile end markets. The combined scale is expected to improve pricing power, reduce operating costs, and accelerate growth in resilient sectors.
Terex CEO Simon Meester said the deal positions the company to capture resilient demand and achieve higher margins, while REV Group CEO (name) highlighted the opportunity to leverage complementary product lines and broaden the customer base. Both leaders emphasized the expected operational efficiencies and the ability to invest in innovation.
In the third quarter of 2025, Terex reported revenue slightly below estimates but adjusted earnings per share that beat expectations, maintaining full‑year guidance. REV Group’s Q3 results exceeded analyst forecasts for both revenue and earnings, supporting the valuation of the combined enterprise. The merger is expected to enhance financial strength, free cash flow generation, and create a platform for future consolidation in the specialty equipment sector.
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