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Key Takeaways
- Terex shares surged Monday after the industrial manufacturer said it has agreed to acquire Dover Corp.’s Environmental Solutions Group for $2 billion in cash.
- Terex said the addition of ESG will allow it to create a third division, Environmental Solutions.
- Terex shares jumped 11% following the announcement, while Dover shares slipped 2%.
Shares of industrial manufacturer Terex Corp. (TEX) jumped Monday after the industrial manufacturer said it has agreed to acquire Dover Corp.’s (DOV) Environmental Solutions Group for $2 billion in cash.
Terex said that the deal adds to its existing businesses by growing its exposure to the growing waste and recycling industry, along with increasing its exposure to the North American market.
Terex Projects $25 Million in Savings by 2026
The deal is expected to close in the second half of 2024, the companies said. Terex added it could bring roughly “$25 million of identified synergies to be achieved by the end of 2026, largely driven by procurement, supply chain efficiencies and commercial initiatives.”
Terex will create a new Environmental Solutions segment that includes ESG and its existing Utilities business.
“ESG will add a non-cyclical, financially accretive, and market-leading business to Terex’s portfolio with tangible synergies in the fast-growing waste and recycling end market,” Terex Chief Executive Officer (CEO) Simon Meester said.
Terex shares rose almost 11% to $62.50 around 11 a.m. ET Monday, while Dover shares moved about 2% lower to $180.37.