ESCO Technologies closes $2.3 billion purchase of Megger Group from TBG AG
The deal closed October 1, gives TBG AG a seat on ESCO's board and is funded with about $1.0 billion in new borrowing
Published
ESCO Technologies has completed its purchase of Megger Group Limited from TBG AG, closing a deal valued at approximately $2.3 billion. The transaction became effective October 1, 2026, and covers the entire issued share capital of Megger.
ESCO paid $922 million in cash and issued 5.10 million shares of its common stock to TBG AG. As part of the agreement, TBG AG gains the right to name one member of ESCO's board.
To fund the cash portion of the deal and refinance existing debt, ESCO entered a new credit agreement made up of a $500 million revolving credit facility, a $500 million term loan A facility and a $500 million term loan B facility. It drew down approximately $1.0 billion of that at closing. The new agreement replaces ESCO's prior credit facility, which was terminated.
The closing moves ESCO from an announced deal to an operating reality. The company now carries meaningfully more debt than before the acquisition, and the combination of cash and newly issued shares means the near term focus shifts to integrating Megger and paying down that debt rather than clearing deal approval hurdles. TBG AG's new board seat gives the seller an ongoing voice in ESCO's governance rather than a simple payout, and with the old credit agreement gone, the covenant terms and refinancing capacity of the new facilities become the things to watch next.