Astec Completes Acquisition of CWMF, LLC

Astec (NASDAQ: ASTE) completed its acquisition of CWMF, LLC on January 2, 2026 for $67.5 million in cash on a cash-free, debt-free basis.

Rhea-AI Summary

Astec (NASDAQ: ASTE) completed its acquisition of CWMF, LLC on January 2, 2026 for $67.5 million in cash on a cash-free, debt-free basis. Astec said the deal brings about $50 million of annual revenue and is expected to be EPS-accretive, increase gross profit and adjusted EBITDA margins, and deliver synergies by the end of year one.

The company expects a proforma net leverage range of 1.5–2.5x net debt/adjusted EBITDA and described CWMF as adding capacity to its Infrastructure Solutions segment and expanding regional customer relationships in the Midwest, South-Central and Great Lakes.

Positive

• $67.5M cash purchase price completed
• Adds approximately $50M annual revenue
• Expected EPS accretion and margin expansion
• Synergies expected by end of year one

Negative

• Transaction increases proforma leverage to 1.5–2.5x net debt/adjusted EBITDA
• Immediate cash outflow of $67.5M

Argus Jan 2 session

+3.02% close to close Open Argus

Details

News Market Reaction – ASTE

In the Jan 2 session, ASTE gained 3.02%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms closing of the CWMF acquisition for $67.5 million in cash, adding a busin...

Analysis

This announcement confirms closing of the CWMF acquisition for $67.5 million in cash, adding a business with about $50 million in annual revenue. Management expects higher gross margins, stronger adjusted EBITDA margins, and EPS accretion while keeping net leverage near 1.5–2.5x net debt/adjusted EBITDA. In the context of the 2025 TerraSource deal, investors may track integration progress, synergy delivery, and segment growth within Infrastructure Solutions.

Key Figures

CWMF purchase price: $67.5 million CWMF annual revenue: $50 million Proforma net leverage: 1.5–2.5x +1 more

CWMF purchase price

$67.5 million

Cash consideration on a cash-free, debt-free basis

CWMF annual revenue

$50 million

Stated approximate annual revenue

Proforma net leverage

1.5–2.5x

Expected net debt/adjusted EBITDA after acquisition

EPS impact

EPS accretive

Company anticipates earnings per share accretion

Historical Context

5 past events · Latest: Dec 04

5 events

1. Dec 04

   Acquisition agreement

   24h Move

   +1.4%

   Signed definitive agreement to acquire CWMF, targeting accretive growth.

2. Nov 11

   Conference participation

   24h Move

   -3.0%

   Announced participation in Stephens investment conference and 1x1 meetings.

3. Nov 06

   Conference participation

   24h Move

   -1.4%

   Planned attendance at Baird 2025 Global Industrial Conference for investor meetings.

4. Nov 05

   Earnings update

   24h Move

   -2.2%

   3Q25 results with net loss and TerraSource integration weighed on shares.

5. Oct 27

   Dividend declaration

   24h Move

   -0.4%

   Declared quarterly cash dividend of $0.13 per share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

earnings per share, adjusted EBITDA, net leverage ratio, net debt

4 terms

earnings per share financial

"increase gross profit margins, adjusted EBITDA margins and earnings per share."

Earnings per share represent the amount of profit a company makes for each share of its stock, similar to how a pie’s total size can be divided into slices for each person. It helps investors understand how profitable the company is on a per-share basis, making it easier to compare its performance over time or against other companies. Higher earnings per share generally indicate better profitability and can influence a company's stock value.

View in glossary

adjusted EBITDA financial

"Expected proforma net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

net leverage ratio financial

"Expected proforma net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA"

The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.

net debt financial

"Expected proforma net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Revenue growth potential, margin expansion, EPS accretive
• Purchase price of $67.5 million in cash, on a cash-free, debt-free basis
• Synergies expected by end of year one
• Expected proforma net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA

CHATTANOOGA, Tenn., Jan. 02, 2026 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (NASDAQ: ASTE) (“Astec” or “Company”) today announced the completion of its acquisition of CWMF, LLC (“CWMF”). Astec anticipates the acquisition will increase gross profit margins, adjusted EBITDA margins and earnings per share.

Jaco van der Merwe, Astec President and CEO said: “We are pleased to welcome the CWMF employees into the Astec family. CWMF has strong customer relationships in the Midwest, South-Central and Great Lakes regions of the United States and is an excellent cultural fit with Astec. The addition enhances our ability to serve our customers, increases capacity in our Infrastructure Solutions segment and adds further growth opportunities to generate enhanced shareholder value.”

Brian Harris, Chief Financial Officer, commented, “The addition of CWMF is consistent with our disciplined growth strategy. With annual revenue of approximately $50 million, we fully expect CWMF will enhance our earnings and be accretive while we will stay within our previously disclosed, disciplined leverage range.”

About ASTEC

Astec is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that includes our aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance

About CWMF

CWMF (https://cwmfcorp.com/) is a United States manufacturer of portable and stationary asphalt plant equipment, including drum mixers, baghouses, reclaimed asphalt product (RAP) crushers, scalping screens, and complete plant components. CWMF equipment is known for durability, craftsmanship, and practical design.

Forward Looking Statements

Safe Harbor Statements under the Private Securities Litigation Reform Act.

This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flow, changes in operations, operating improvements, businesses in which we operate, anticipated benefits from the CWMF acquisition, and the United States economy. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," “supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.

For Additional Information Contact:
Steve Anderson
Senior Vice President of Administration and Investor Relations
Phone: (423) 899-5898
E-mail: sanderson@astecindustries.com

For more information, visit astecindustries.com and follow us on social media.

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FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When did Astec (ASTE) complete the acquisition of CWMF and what was the purchase price?

Astec completed the acquisition on January 2, 2026 for $67.5 million in cash on a cash-free, debt-free basis.

How much revenue does CWMF contribute to Astec (ASTE)?

CWMF brings approximately $50 million of annual revenue.

How will the CWMF acquisition affect Astec's (ASTE) leverage?

Astec expects a proforma net leverage range of 1.5–2.5x net debt/adjusted EBITDA after the acquisition.

Will the CWMF deal be accretive to Astec (ASTE) shareholders?

The company expects the acquisition to be EPS-accretive and to increase gross profit and adjusted EBITDA margins.

When does Astec expect to realize synergies from the CWMF acquisition?

Astec expects synergies to be achieved by the end of year one following the acquisition.

Which Astec business segment does CWMF enhance and which regions benefit?

CWMF increases capacity in Astec's Infrastructure Solutions segment and expands customer coverage in the Midwest, South-Central, and Great Lakes regions.