Terex's $2B Power Play: Expands North American Footprint With ESG Deal
Portfolio Pulse from Lekha Gupta
Terex Corporation (NYSE:TEX) is acquiring Environmental Solutions Group (ESG) from Dover Corporation (NYSE:DOV) for $2 billion in an all-cash deal. The acquisition is expected to enhance Terex's financial profile and expand its North American footprint. The transaction is anticipated to close in the second half of 2024.
July 22, 2024 | 1:45 pm
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NEGATIVE IMPACT
Dover Corporation is selling ESG to Terex for $2 billion. The sale is part of Dover's strategy to streamline its portfolio. DOV shares have declined 0.36% following the announcement.
The sale of ESG is part of Dover's strategy to streamline its portfolio. The market has reacted with a slight decline of 0.36% in DOV shares.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Dover Corporation through the First Trust Bloomberg Inflation Sensitive Equity ETF (FTIF). The ETF may experience minor fluctuations due to the sale of ESG by Dover.
FTIF holds Dover Corporation, and the sale of ESG may cause minor fluctuations in the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Dover Corporation through the Vesper US Large Cap Short-Term Reversal Strategy ETF (UTRN). The ETF may experience minor fluctuations due to the sale of ESG by Dover.
UTRN holds Dover Corporation, and the sale of ESG may cause minor fluctuations in the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Terex Corporation's acquisition of ESG is expected to significantly enhance its financial profile, increase North American exposure, and add a non-cyclical, market-leading business to its portfolio. The deal is expected to be EPS accretive by 2025.
The acquisition is expected to enhance Terex's revenue, free cash flow, EBITDA margin, and EPS. The market has reacted positively with a 7.32% increase in TEX shares.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100