Overview
- A deal announced Wednesday between ESCO and TBG values Megger at $2.35 billion, split between $0.9 billion in cash and about $1.4 billion in ESCO stock.
- ESCO says committed financing will fund the cash portion using a mix of existing cash and new debt.
- Megger would join ESCO’s Utility Solution Group, which sells testing and monitoring tools for electric grids, and is expected to generate about $590 million in 2026 revenue.
- ESCO targets about $60 million in cost savings within three years and says the price equals roughly 14 times projected 2026 EBITDA including synergies.
- TBG agreed to lock up its ESCO shares and will gain the right to nominate one ESCO director at closing, with completion still pending required approvals and other conditions.