AcquisitionsApr 15, 2026, 05:26 PM
ESCO to Acquire Megger Group for $2.35B, Expanding Utility Solutions
AI Summary
ESCO Technologies Inc. announced its agreement to acquire Megger Group Limited from TBG AG for $2.35 billion. The consideration comprises $0.9 billion in cash and approximately $1.4 billion in ESCO equity. This acquisition is expected to significantly expand ESCO's scale and international reach, particularly within its Utility Solution Group segment, by adding complementary products and a strong global presence. The deal is anticipated to generate approximately $60 million in cost synergies within three years and positions ESCO for continued growth in high-growth utility and aerospace & defense markets.
Key Highlights
- ESCO to acquire Megger Group Limited for $2.35 billion.
- Consideration includes $0.9 billion cash and $1.4 billion ESCO equity.
- Acquisition valued at approximately 14x projected 2026 EBITDA.
- Megger expected to generate $590 million in revenue in 2026.
- Expected to realize $60 million in cost synergies within three years.