Business
Astec To Acquire Concrete Equipment Providers CON-E-CO AND BMH Systems
Highlights: Builds On Well-Respected Astec Brands in Concrete Market to Create a More Comprehensive Concrete Plant Offering, with Asphalt Plant Cross-Selling
About this update from Astec Industries, Inc.
[{"type":"text","content":"Highlights:\n Builds On Well-Respected Astec Brands in Concrete Market to Create a More Comprehensive Concrete Plant Offering, with Asphalt Plant Cross-Selling OpportunitiesConsistent with Astec’s Strategy to Simplify, Focus and Grow Profitably to Enhance Shareholder Value CHATTANOOGA, Tenn., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today announced the acquisition of two premier full-line concrete batch plant manufacturers serving customers around the world. Astec has acquired Concrete Equipment Company, Inc. (“CON-E-CO”) and BMH Systems, Inc. (“BMH”), which had combined annualized sales in 2019 of approximately $50 million. The acquisitions were funded with cash on hand and will be immediately accretive to EPS. Terms of the transactions were not disclosed. “We are very pleased to welcome CON-E-CO and BMH Systems to Astec,” commented Barry A. Ruffalo, Chief Executive Officer of Astec. “The addition of these highly regarded brands, along with our existing RexCon brand of concrete products will significantly strengthen our ability to serve our customers’ needs - Rock to Road. By bringing these product lines together, our global customers will have access to the most robust line of concrete products in the infrastructure industry. Both organizations are an excellent cultural fit with Astec, as they are customer focused, innovative and performance-oriented. These acquisitions also reflect our disciplined capital allocation process, and we maintain significant financial flexibility as we continue to effectively manage our operations in this unprecedented environment.” CON-E-CO CON-E-CO, headquartered in Blair, Nebraska, engineers, manufactures and supports a complete line of portable and stationary concrete batch plants, mixers, material handling systems and dust control. CON-E-CO’s complementary brands and product lines will enable Astec to better compete in the concrete market while leveraging sales and purchasing across the combined organizations. BMH Systems BMH Systems, headquartered in Montreal, Canada, specializes in high performance concrete batch plants, bagging plants and custom batch plants to service the needs of infrastructure projects around the world. The integration of the BMH Systems product lines into Astec provides a comprehensive concrete plant offering in North America, enhances engi...