CECO Environmental Corp. has announced a definitive agreement to acquire Thermon Group Holdings, Inc. in a transaction valued at approximately $2.2 billion. This strategic combination aims to create a global leader in delivering mission-critical environmental and thermal solutions, enhancing CECO’s existing offerings with Thermon’s expertise in industrial process heating.
The merger brings together two complementary businesses, with CECO’s focus on environmental solutions and Thermon’s leadership in industrial process heating. This union is expected to bolster CECO’s position in key secular trends such as energy transition, power generation, industrial reshoring, and decarbonization. The combined company will offer a comprehensive platform of industrial solutions designed to protect customers’ people, equipment, processes, and the environment.
Thermon’s technologies in process heating, heat tracing, and temperature management will significantly enhance CECO’s portfolio. This integration is anticipated to deepen CECO’s involvement in mission-critical customer applications where reliability, safety, and efficiency are paramount. The expanded global reach and customer relationships are expected to accelerate growth for the combined entity.
The transaction is projected to generate approximately $40 million in annual cost synergies within 36 months. Following the close, CECO anticipates a more balanced revenue mix with increased exposure to short-cycle and aftermarket product and service revenues. The combined company’s enhanced financial profile is expected to drive strong incremental annual growth.
Thermon shareholders will have the option to elect to receive a mix of cash and CECO common stock, all cash, or all stock, subject to proration. Based on CECO’s closing stock price on February 23, 2026, the mixed consideration represents a premium of 26.8% to Thermon’s closing stock price on the same day. Upon completion, CECO and Thermon shareholders are expected to own approximately 62.5% and 37.5% of the combined company, respectively. Todd Gleason will continue as CEO of the combined company, which will include two members from Thermon’s current board. The transaction is expected to close by mid-2026.