ESCO Acquires Megger for $2.35 Billion, Boosts Utility Solutions

(NYSE: ESE) announced its agreement to acquire Megger Group Limited from TBG AG for $2.35 billion, comprising $0.9 billion in cash and $1.4 billion in ESCO equity, a move that significantly expands ESCO's global footprint and strengthens its Utility Solution Group segment. This transformational acquisition, valued at approximately 14x projected 2026 EBITDA including synergies, positions ESCO as a more comprehensive partner for utilities worldwide, integrating Megger's leading test, monitoring, and data analytics solutions.

Megger is expected to contribute $590 million in revenue in 2026, driven by global grid infrastructure upgrades. ESCO anticipates realizing $60 million in cost synergies within three years, further enhancing its exposure to high-growth, profitable utility and aerospace & defense markets, which will account for 85 percent of pro forma revenue.

ESCO also reported strong preliminary Q2 2026 results, with revenue of $309 million and adjusted EPS of $1.91, exceeding prior guidance.