In a bold industrial move set to reshape the U.S. specialty equipment landscape, Terex Corp. and REV Group have announced a merger valued at approximately $9 billion. The landmark agreement, unveiled Thursday, is being guided by legal heavyweights Fried Frank Harris Shriver & Jacobson LLP, Pryor Cashman LLP, and Davis Polk & Wardwell LLP.
The merger will forge one of the largest specialty equipment manufacturers in the nation, blending Terex’s global footprint in construction and material processing with REV’s stronghold in emergency vehicles, utility systems, and environmental machinery.
A Strategic Industrial Alliance
Under the terms of the deal, REV shareholders will receive $8.71 in cash and 0.9809 Terex shares for each REV share held. Once finalized, Terex shareholders will control about 58% of the combined company, while REV investors will hold 42%, trading under the “TEX” ticker on the New York Stock Exchange.
Despite the fanfare, markets reacted cautiously. Terex shares dropped 15%, while REV slipped 9% in Thursday’s trading.
The newly combined entity is projected to generate $7.8 billion in annual revenue and aims to achieve $75 million in cost synergies by 2028, with half of those savings expected within the first year after closing.
