Terex Corp. — a Norwalk-based manufacturer of material-processing equipment, utility trucks, cranes and aerial lifts — has agreed to merge with Wisconsin-based REV Group Inc., a maker of specialty and commercial vehicles, in a stock-and-cash deal that will combine the two industrial companies into a single publicly traded entity focused on specialty equipment manufacturing.
Under the agreement, REV shareholders will receive $8.71 in cash and 0.98 shares of the new company for each REV share they own. When the deal closes, Terex shareholders will own about 58% of the combined business and REV shareholders about 42%.
The merger will create a manufacturer with about $7.8 billion in annual revenue, producing equipment used in emergency services, waste and recycling, utilities, and other industrial markets. The companies expect the deal to close in the first half of 2026, pending shareholder and regulatory approval.
As part of the announcement, Terex said it plans to exit its aerial-lift business — which includes equipment like boom lifts and scissor lifts — by selling or spinning off that division. The company said the move will allow it to focus more on less-cyclical, higher-growth segments.
The companies said the merger is expected to result in about $75 million in annual cost savings and efficiencies by 2028, with roughly half realized within the first year after the transaction closes. Those savings will come from combining operations, streamlining supply chains and reducing overhead expenses.
Simon Meester, currently Terex’s president and CEO, will lead the combined company, which will keep its headquarters in the United States.
Both companies said the merger will help them broaden their product lines and customer base while lowering costs.