Ceco Environmental and Thermon to Merge in $2.2B Deal
Ceco Environmental (CECO) and Thermon Group Holdings (THR) announced the companies have entered into a definitive agreement to combine in a stock and cash transaction valued at approximately $2.2B. The combined company is expected to generate approximately $40M of annual cost synergies within 36 months. Under the terms of the agreement, Thermon shareholders will have the ability to elect to receive, for each share of Thermon common stock they own, one of the following forms of consideration: (i) mixed consideration consisting of $10.00 in cash and 0.6840 shares of CECO common stock, (ii) all-cash consideration of $63.89 per share, or (iii) all-stock consideration of 0.8110 shares of CECO common stock per share, in each case subject to proration and allocation procedures designed to ensure that the aggregate amount of cash and stock paid in the transaction does not exceed specified limits. Thermon shareholders who do not make an election will receive the mixed consideration. The mixed consideration represents a total per share value of approximately $63.13, based on the closing stock price of $77.68 per share of CECO on February 23, 2026 which represents a 26.8% premium to the closing stock price of $49.77 per share of Thermon on February 23, 2026. Upon completion of the transaction, CECO and Thermon shareholders are expected to own approximately 62.5% and 37.5%, respectively, of the combined company. The transaction, which has been unanimously approved by the board of directors of both companies, is anticipated to close in mid-2026, subject to satisfaction of customary closing conditions. Following completion of the transaction, CECO will continue to be led by CEO Todd Gleason and the CECO Board of Directors, which will include two members of the current Thermon Board of Directors.
