CECO Environmental agreed on 24 February to combine with Thermon Group Holdings, the Austin, Texas-based industrial process heating company, in a stock-and-cash transaction valued at about $2.2bn.
Why CECO Environmental Corp. is buying Thermon Group Holdings, Inc.
CECO chief executive Todd Gleason said Thermon brought highly complementary industrial heating and thermal capabilities with strong margins. The combined group spans thermal and acoustic management, emissions control, industrial air quality, natural gas treatment and industrial water treatment, with a more balanced mix of short-cycle and aftermarket revenue and exposure to energy transition, power generation, reshoring, infrastructure and tighter environmental rules.
Deal terms and financing
Thermon holders could choose $10.00 in cash plus 0.6840 CECO share, $63.89 in cash, or 0.8110 CECO share for each share, subject to proration; the default mixed consideration was worth about $63.13 at CECO's 23 February close, a 26.8% premium. CECO arranged committed financing from BofA Securities, and its chairman Jason DeZwirek and related holders, with about 15.2% of voting power, agreed to support the deal. Two Thermon directors joined the CECO board.
Regulatory approvals and timing
Shareholders of both companies approved the combination on 28 May 2026, with about 99.93% of votes cast at CECO and 99.97% at Thermon in favour. CECO completed the merger on 1 June 2026.
Market context
Manufacturing Dive described Thermon as a maker of heat tracing cables, boilers and other industrial equipment, and said the deal broadens CECO beyond air pollution control, fluid handling and filtration. Both companies are based in Texas, and the combined group continues as CECO on Nasdaq.
