CECO Environmental Corp. said Tuesday it has agreed to acquire Thermon Group Holdings Inc. in a stock and cash deal valued at about $2.2 billion, expanding its footprint in industrial thermal and environmental solutions.

Gibson Dunn & Crutcher LLP is advising CECO, while Sidley Austin LLP is advising Thermon.

For each share held, Thermon shareholders can elect to receive either $10 in cash and 0.6840 shares of CECO common stock, $63.89 in cash, or 0.8110 shares of CECO stock, subject to terms that keep each payout within agreed limits, the companies said in an announcement.

The consideration implies a value of about $63.13 per Thermon share, representing a premium of about 26.8% to Thermon's prior-day closing price of $49.77, the companies said.

Thermon's stock was up about 2.5% Tuesday, trading at $51.08 midafternoon.

The combination will add Thermon's process heating, heat tracing, and temperature management technologies to CECO's portfolio of air quality, emissions control, and water treatment solutions.

Upon completion, CECO and Thermon shareholders are expected to own about 62.5% and 37.5%, respectively, of the combined company.

CECO CEO Todd Gleason will continue to lead the company, and the CECO board will include two members from Thermon's current board.

The companies said they expect to generate about $40 million in annual cost synergies within 36 months of closing, and they expect to have a more balanced revenue mix with greater exposure to short cycle and aftermarket revenues.

The deal has been unanimously approved by the boards of both companies and is expected to close in mid-2026, subject to customary closing conditions.

The Sidley team is led by partners Scott Williams and Matthew Stoker.

The Gibson Dunn team is led by partners Jonathan Whalen and Jeffrey Chapman.