ESCO Technologies agreed on 15 April to acquire Megger Group, a Dover-based maker of electrical test and monitoring equipment for utilities and critical power infrastructure, from TBG AG for US$2.35bn.
Why ESCO Technologies Inc. is buying Megger Group Limited
ESCO said the deal would expand its scale and international reach and was a major step in building a utility solutions platform. Megger will join ESCO's Utility Solutions Group and be combined with Doble Engineering; ESCO expects about US$60m of cost synergies within three years.
“This transformational transaction will expand our scale and international reach”
Deal terms and financing
ESCO pays US$0.9bn in cash, funded from cash on hand and new debt with committed financing in place, and issues shares worth about US$1.4bn, or about 5.1 million shares. The price is about 14 times Megger's projected 2026 EBITDA including synergies. TBG has agreed to a lock-up on its ESCO shares and will be able to nominate one director.
Regulatory approvals and timing
Closing is subject to regulatory approvals. In its fiscal third-quarter results, ESCO said all filings were under way and that it still expected to complete the deal in the first quarter of fiscal 2027.
Market context
Megger operates in 41 jurisdictions, with significant operations in the UK, Germany, the US, Sweden, India and Israel, and serves utilities, industrial, transport, data centre and renewable energy customers.
