In a significant corporate move, Terex Corporation (NYSE: TEX) and REV Group, Inc. (NYSE: REVG) have announced a strategic merger agreement designed to strengthen their positions in the manufacturing industry. The merger, officially termed the Agreement and Plan of Merger, was executed on October 29, 2025, and involves two merger subsidiaries, Tag Merger Sub 1 Inc. and Tag Merger Sub 2 LLC.
Under the terms of the merger, Merger Sub 1 will first merge with REV, whereupon REV will continue as a wholly owned subsidiary of Terex. Following this, REV will then merge into Merger Sub 2, which will be the surviving entity and also a direct subsidiary of Terex. Shareholders of REV will receive a combination of 0.9809 shares of Terex common stock and $8.71 in cash for each share of REV common stock they own, totaling an implied value of approximately $63.62 per share based on Terex's closing price of $55.98 on October 29, 2025.
With an estimated ownership structure post-merger, holders of REV common stock will control about 42% of Terex, while Terex shareholders will maintain 58%. This merger is seen as a strategic move that enhances the combined company's efficiency and competitive edge in the market, allowing for greater resource allocation and operational synergies.
The transaction is expected to close following approval from both companies' shareholders, with a special meeting for Terex stockholders scheduled for [date not specified], 2026. At this meeting, stockholders will vote on the issuance of Terex shares to REV shareholders. A concurrent special meeting for REV stockholders will cover the adoption of the merger agreement and executive compensation related to the deal.
Regulatory approval is a standard part of the process, and both companies will need to navigate any antitrust considerations that may arise during the review. The boards of both Terex and REV have deemed the merger beneficial and in the best interests of their respective shareholders, urging them to vote in favor of the proposals.
This merger not only signals a consolidation in the manufacturing sector but also raises expectations for enhanced shareholder value and market responsiveness as the combined entity leverages its expanded capabilities. Stakeholders are encouraged to monitor the upcoming special meetings and vote on these pivotal proposals that will shape the future of Terex and REV.