Astec Industries today said it has agreed to sell its American Augers subsidiary and assets related to the Trencor large trencher product line of Astec Underground to The Charles Machine Works for $55 million in cash.
Chattanooga-based Astec said in a news release that it expects the sale to the Perry, Okla., business to close before the end of the year.
Not included in the sale is the American Augers vertical oil and gas drilling rig product line and the four-track surface miner product line manufactured at Astec Underground.
The total revenues of the sold business unit and product line were $42 million for the nine months ended Sept. 30, the company said.
"We acquired the Trencor operation in 1988 and American Augers in 1999. These businesses have been very cyclical through the years," said J. Don Brock, Astec's chief executive, in a statement.
See Friday's Times Free Press for full story.