Astec Enters into Definitive Agreement to Acquire CWMF Corporation
Rhea-AI Summary
Astec (NASDAQ: ASTE) signed a definitive agreement to acquire CWMF Corporation, a portable and stationary asphalt plant equipment and parts manufacturer with approximately $50 million in annual revenue. The deal targets CWMF's distribution footprint in the Midwest, South-Central and Great Lakes U.S. regions.
Astec expects to close in Q1 2026, projects the transaction will be accretive from day one, and expects consolidated net leverage to remain within its previously disclosed 1.5 to 2.5x net debt/adjusted EBITDA range.
Positive
- $50M annual revenue at CWMF
- Transaction expected accretive from day one
- Projected consolidated net leverage to stay within 1.5–2.5x net debt/adjusted EBITDA
Negative
- None.
News Market Reaction
On the day this news was published, ASTE gained 1.36%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While ASTE was up 4.7%, peers like LNN, HY, TWI, BLBD, and MTW showed smaller gains between 0.69% and 3.25%, suggesting a more company-specific reaction to the CWMF acquisition.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 04 | Acquisition agreement | Positive | +1.4% | Definitive agreement to acquire CWMF with expected day-one accretion. |
| Nov 11 | Conference participation | Neutral | -3.0% | Announcement of participation in Stephens Investment Conference meetings. |
| Nov 06 | Conference participation | Neutral | -1.4% | Disclosure of attendance at Baird 2025 Global Industrial Conference. |
| Nov 05 | Earnings release | Neutral | -2.2% | 3Q25 results with higher sales, adjusted profit, but GAAP net loss. |
| Oct 27 | Dividend declaration | Positive | -0.4% | Announcement of a $0.13 per share quarterly cash dividend. |
Acquisition announcements and corporate updates have generally produced modest price moves, with positive actions such as acquisitions often seeing small positive reactions and at least one dividend event drawing a mild negative move.
Over the last few months, Astec reported strong 3Q25 growth with net sales of $350.1M but a small GAAP net loss, completed the sizable TerraSource acquisition, and maintained shareholder returns via a $0.13 quarterly dividend. The company also engaged investors through multiple conferences. Earlier in 2025, Astec completed the $245M TerraSource deal, expected to be accretive with meaningful synergies. Today’s CWMF acquisition agreement continues this acquisition-driven growth strategy while management reiterates leverage discipline.
Market Pulse Summary
This announcement details Astec’s definitive agreement to acquire CWMF, adding about $50 million of annual revenue and extending its asphalt plant footprint. Management expects the transaction to be accretive from day one and to keep net leverage within the 1.5–2.5x net debt/adjusted EBITDA range. Context includes recent TerraSource and 3Q25 results, where Astec balanced strong sales growth with a small GAAP loss. Investors may watch closing in Q1 2026 and post-deal margins.
Key Terms
net leverage ratio financial
adjusted EBITDA financial
AI-generated analysis. Not financial advice.
CHATTANOOGA, Tenn., Dec. 04, 2025 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (NASDAQ: ASTE) (“Astec” or “Company”) today announced the signing of a definitive agreement to acquire CWMF Corporation (“CWMF”). CWMF (https://cwmfcorp.com/) is a manufacturer of portable and stationary asphalt plant equipment and parts with annual revenues of approximately
Jaco van der Merwe, Astec President and Chief Executive Officer said, “The pending CWMF acquisition is consistent with our disciplined growth strategy. Based on the extensive product and manufacturing knowledge of our combined teams, we anticipate integration to be efficient. Our organizations are a strong cultural fit, and we look forward to having the CWMF employees join the Astec team.”
Brian Harris, Chief Financial Officer added, “We anticipate closing on the CWMF acquisition in the first quarter of 2026. We expect the transaction to be accretive from day one and project our consolidated net leverage ratio to remain within our previously disclosed range of 1.5 to 2.5x net debt/adjusted EBITDA.”
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 designs, engineers, manufactures and markets a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, including industrial automation controls and telematics platforms, as well as supply asphalt road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment, along with aftermarket parts and Materials Solutions that designs and manufactures heavy and soft rock processing equipment, in addition to servicing and supplying parts for the aggregate, civil construction, energy, mining, hydro-electric, recycling, ports and bulk material handling markets.
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 CWMF acquisition, timing of the CWMF 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, 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
What did Astec (ASTE) announce on December 4, 2025 about CWMF?
When does Astec expect to close the CWMF acquisition (ASTE)?
How will the CWMF deal affect Astec's leverage (ASTE)?
Will the CWMF acquisition be immediately accretive to ASTE shareholders?
Where are CWMF products primarily distributed for ASTE's acquisition?
