The deal sees Terberg acquire Spanish parent company RosRoca Environmental - a major European manufacturer of refuse collection vehicles.
The newly formed group will merge the existing Terberg environmental companies with RosRoca and the combined business will be headquartered in Warwick.
The merged company will have revenues of approximately €385m annually and will boast 1,300 employees.
George Terberg, chairman of the Terberg managing board, said: "This merger will allow us to share our technological expertise and enhance our market leading position in the UK market.
“On behalf of Terberg Group and the Terberg RosRoca Group team, I would like to express our sincere appreciation to Barclays who accepted the challenge of the project to finance Terberg RosRoca Group Limited.
“The tight timescales and the international dimensions meant it has not been an easy project but the pro-active commitment to this deal has been essential.”
The merger will enable the future growth of the two businesses and support new product developments to be more efficiently introduced.
It is hoped this will protect the company’s UK competitive position against imported products and enhance exports from the UK.
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