Astec Completes Acquisition of TerraSource Holdings, LLC
Astec Industries (NASDAQ: ASTE) has completed the acquisition of TerraSource Holdings, LLC for a purchase price of $245 million in cash on a cash-free, debt-free basis. The net purchase price is $230 million when adjusted for approximately $15 million net present value of anticipated tax benefits.
The strategic acquisition is expected to enhance Astec's financial profile, as TerraSource's business consists of approximately 60% aftermarket parts and service revenues and 80% of gross profit. The company anticipates annual run-rate synergies of approximately $10 million by the end of year two, primarily from procurement savings. The 2025 proforma net leverage ratio is expected to be approximately 2.0x net debt/adjusted EBITDA.
TerraSource brings to Astec its portfolio of industry-leading equipment, including crushers, feeders, separators, and sizers, along with legendary brands such as Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher, and Elgin. The acquisition is expected to be accretive to earnings from day one, increase gross profit margins, and adjusted EBITDA margins.
Astec Industries (NASDAQ: ASTE) ha completato l'acquisizione di TerraSource Holdings, LLC per un prezzo di acquisto di 245 milioni di dollari in contanti, su base cash-free e debt-free. Il prezzo netto di acquisto è di 230 milioni di dollari considerando un valore attuale netto di circa 15 milioni di dollari di benefici fiscali previsti.
L'acquisizione strategica dovrebbe migliorare il profilo finanziario di Astec, dato che il business di TerraSource è composto per circa il 60% da ricavi aftermarket di parti e servizi e per il 80% dal margine lordo. L'azienda prevede sinergie annuali di circa 10 milioni di dollari entro la fine del secondo anno, principalmente derivanti da risparmi negli approvvigionamenti. Il rapporto proforma di leva finanziaria netta per il 2025 è stimato intorno a 2,0x debito netto/EBITDA rettificato.
TerraSource porta ad Astec un portafoglio di attrezzature leader nel settore, tra cui frantoi, alimentatori, separatori e sizer, insieme a marchi storici come Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher ed Elgin. L'acquisizione dovrebbe essere positiva per gli utili fin dal primo giorno, aumentando i margini di profitto lordo e i margini di EBITDA rettificato.
Astec Industries (NASDAQ: ASTE) ha finalizado la adquisición de TerraSource Holdings, LLC por un precio de compra de 245 millones de dólares en efectivo, sobre una base libre de efectivo y deuda. El precio neto de compra es de 230 millones de dólares al ajustarse por un valor presente neto aproximado de 15 millones de dólares en beneficios fiscales anticipados.
Se espera que esta adquisición estratégica mejore el perfil financiero de Astec, ya que el negocio de TerraSource consiste en aproximadamente un 60% de ingresos por piezas y servicios postventa y un 80% del beneficio bruto. La compañía anticipa sinergias anuales de aproximadamente 10 millones de dólares para finales del segundo año, principalmente provenientes de ahorros en adquisiciones. La relación proforma de apalancamiento neto para 2025 se espera sea aproximadamente 2,0x deuda neta/EBITDA ajustado.
TerraSource aporta a Astec su portafolio de equipos líderes en la industria, incluyendo trituradoras, alimentadores, separadores y dimensionadores, junto con marcas legendarias como Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher y Elgin. Se espera que la adquisición sea beneficiosa para las ganancias desde el primer día, aumentando los márgenes de beneficio bruto y los márgenes de EBITDA ajustado.
Astec Industries (NASDAQ: ASTE)가 TerraSource Holdings, LLC를 현금 2억 4,500만 달러에 인수 완료했으며, 현금 및 부채 없는 기준으로 거래되었습니다. 예상 세금 혜택의 순현재가치 약 1,500만 달러를 조정한 순매입가는 2억 3,000만 달러입니다.
이번 전략적 인수는 TerraSource의 비즈니스가 약 60%가 애프터마켓 부품 및 서비스 수익으로 구성되고, 총이익의 80%를 차지함에 따라 Astec의 재무 프로필을 향상시킬 것으로 기대됩니다. 회사는 주로 조달 비용 절감에서 오는 연간 약 1,000만 달러의 시너지 효과를 2년 차 말까지 예상하고 있습니다. 2025년 프로포마 순부채/조정 EBITDA 순레버리지 비율은 약 2.0배로 예상됩니다.
TerraSource는 Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher, Elgin과 같은 전설적인 브랜드와 함께 파쇄기, 공급기, 분리기, 사이저 등 업계 선도 장비 포트폴리오를 Astec에 제공합니다. 이번 인수는 첫날부터 수익 증가에 기여하고, 총이익률 및 조정 EBITDA 마진을 높일 것으로 기대됩니다.
Astec Industries (NASDAQ : ASTE) a finalisé l'acquisition de TerraSource Holdings, LLC pour un prix d'achat de 245 millions de dollars en espèces, sur une base sans liquidités ni dettes. Le prix d'achat net est de 230 millions de dollars après ajustement pour une valeur actuelle nette d'environ 15 millions de dollars de bénéfices fiscaux anticipés.
Cette acquisition stratégique devrait améliorer le profil financier d'Astec, puisque l'activité de TerraSource est constituée d'environ 60 % de revenus de pièces et services après-vente et de 80 % du bénéfice brut. La société anticipe des synergies annuelles d'environ 10 millions de dollars d'ici la fin de la deuxième année, principalement grâce à des économies sur les achats. Le ratio d'endettement net pro forma pour 2025 devrait être d'environ 2,0x dette nette/EBITDA ajusté.
TerraSource apporte à Astec son portefeuille d'équipements leaders dans l'industrie, comprenant des concasseurs, alimentateurs, séparateurs et dimensionneurs, ainsi que des marques légendaires telles que Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher et Elgin. L'acquisition devrait être bénéficiaire dès le premier jour, augmenter les marges brutes et les marges d'EBITDA ajusté.
Astec Industries (NASDAQ: ASTE) hat die Übernahme von TerraSource Holdings, LLC für einen Kaufpreis von 245 Millionen US-Dollar in bar auf einer cash- und schuldenfreien Basis abgeschlossen. Der Nettokaufpreis beträgt 230 Millionen US-Dollar, wenn man den Barwert von etwa 15 Millionen US-Dollar erwarteter Steuervorteile berücksichtigt.
Die strategische Übernahme soll das Finanzprofil von Astec verbessern, da das Geschäft von TerraSource zu etwa 60 % aus Ersatzteil- und Serviceumsätzen und zu 80 % aus Bruttogewinn besteht. Das Unternehmen erwartet jährliche Synergien von etwa 10 Millionen US-Dollar bis Ende des zweiten Jahres, hauptsächlich durch Einsparungen bei der Beschaffung. Das proforma Netto-Finanzierungsverhältnis für 2025 wird voraussichtlich etwa 2,0x Nettoverschuldung/angepasstes EBITDA betragen.
TerraSource bringt Astec ein Portfolio branchenführender Ausrüstung mit, darunter Brecher, Förderer, Separatoren und Zerkleinerer, sowie legendäre Marken wie Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher und Elgin. Die Übernahme soll ab dem ersten Tag gewinnsteigernd wirken und die Bruttogewinn- sowie die bereinigten EBITDA-Margen erhöhen.
- Purchase price includes $15 million in tax benefit value
- Expected annual run-rate synergies of $10 million by end of year two
- Accretive to earnings from day one
- TerraSource generates 60% of revenue from high-margin aftermarket parts and service
- TerraSource contributes 80% of gross profit from aftermarket business
- Expands global market presence in attractive end markets
- Significant leverage with expected 2025 proforma net leverage ratio of ~2.0x
- Large cash outlay of $245 million for the acquisition
Insights
Astec's $245M acquisition of TerraSource strengthens margins, adds recurring revenue, and creates synergies while maintaining reasonable leverage.
Astec Industries has completed its
The acquisition's economics are compelling. TerraSource brings a high-quality revenue mix with approximately
Cost synergies of approximately
From a balance sheet perspective, the post-acquisition leverage remains reasonable at approximately 2.0x net debt to adjusted EBITDA for 2025 (proforma), providing adequate financial flexibility for future investments or shareholder returns.
The strategic rationale focuses on expanding global market presence while adding complementary product lines in adjacent industrial markets. TerraSource's century-old brands (Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher, and Elgin) bring established customer relationships and intellectual property in specialized equipment for crushing, feeding, and separation processes.
While specific revenue figures for TerraSource weren't disclosed, the emphasis on margin improvement and immediate accretion suggests a financially sound acquisition multiple relative to the target's earnings contribution.
- Revenue growth potential, margin expansion, EPS accretive, enhanced cash flow
- Purchase price of
$245 million in cash, on a cash-free, debt-free basis. Net purchase price of$230 million when adjusted for ~$15 million net present value of anticipated tax benefits - Annual run rate synergies ~
$10 million expected by end of year two - Expect 2025 proforma net leverage ratio of ~ 2.0x net debt/adjusted EBITDA
CHATTANOOGA, Tenn., July 01, 2025 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (NASDAQ: ASTE) (“Astec” or “Company”) today announced the completion of its acquisition of TerraSource Holding, LLC. Astec anticipates the acquisition will increase gross profit margins, adjusted EBITDA margins and earnings per share as aftermarket parts and service represent approximately
Jaco van der Merwe, Astec President and CEO said: “We are pleased to welcome the TerraSource employees into the Astec family. Astec and TerraSource are a strong cultural fit with a shared focus on innovation, sustainability and customer-centric solutions. The addition of TerraSource adds scale, increases our global market presence in attractive end markets and adds further growth opportunities to generate enhanced shareholder value.”
Brian Harris, Chief Financial Officer, commented, “The addition of TerraSource is consistent with our disciplined growth strategy. It will improve our quality of earnings and is expected to be accretive from day one.”
Kevin Hambrice, TerraSource CEO, commented, “Congratulations to our exceptional colleagues at TerraSource, Right Lane, and Hillenbrand for this successful collaboration. The transformation journey has been remarkable, and I'm confident our partnership with Astec will enable us to continue our positive trajectory, further enhance our market leadership, and deliver exceptional products and services to our customers.”
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.
About TerraSource
TerraSource is a provider of precise, industry-leading equipment including crushers, feeders, separators, sizers, liquid and solid separation, dewatering, and waste management solutions. Legendary +100-year-old brands include Gundlach Crushers, Jeffrey Rader, Pennsylvania Crusher and Elgin.
Forward Looking Statements
Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995
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 TerraSource acquisition and the United States and global economies. 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, including our most recent Quarterly Report on Form 10-Q, 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
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FAQ
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