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The CECO to acquire Thermon deal is set to ignite the industrial technology sector after CECO Environmental Corp. announced Tuesday it will purchase Thermon Group Holdings Inc. in a stock-and-cash transaction valued at roughly $2.2 billion.

The acquisition significantly expands CECO’s reach across industrial thermal and environmental solutions, fusing heat with air, and temperature control with emissions management in a sweeping strategic overhaul.

Deal Terms and Premium

Under the agreement, Thermon shareholders will be given options:

• $10 in cash plus 0.6840 shares of CECO common stock,

• $63.89 in cash, or

• 0.8110 shares of CECO stock.

The structure includes guardrails to ensure payouts remain within agreed allocation limits.

The blended consideration values Thermon shares at approximately $63.13 each — a 26.8% premium over the prior closing price of $49.77. By midafternoon Tuesday, Thermon’s stock had climbed about 2.5%, trading near $51.08.

A Strategic Industrial Fusion

The transaction will weave Thermon’s expertise in process heating, heat tracing and temperature management into CECO’s established platform of air quality, emissions control and water treatment technologies. If CECO’s legacy portfolio manages the air and water, Thermon brings mastery over fire and heat — a combination designed to reshape industrial efficiency.

Once the merger closes, CECO shareholders are expected to hold about 62.5% of the combined company, with Thermon investors owning roughly 37.5%.

CECO Chief Executive Todd Gleason will remain at the helm, and two members of Thermon’s current board will join CECO’s board, signaling continuity amid transformation.

Synergies and Outlook

The companies project roughly $40 million in annual cost synergies within 36 months of closing. They also expect a more balanced revenue mix, with stronger exposure to short-cycle demand and higher-margin aftermarket services — the kind of recurring revenue that steadies companies through industrial cycles.

Both boards unanimously approved the deal. The companies anticipate the transaction will close in mid-2026, pending customary conditions.

Advisers Behind the Deal

Gibson Dunn & Crutcher LLP is advising CECO on the transaction, while Sidley Austin LLP is representing Thermon. The Sidley team is led by partners Scott Williams and Matthew Stoker.

If completed, the deal could mark a defining moment for both companies — an industrial-scale recalibration aimed at heating up growth while cleaning up emissions in an increasingly regulated global market.