Astec Industries, Inc. has purchased two full-line concrete batch plant manufacturers – the Nebraska-based Concrete Equipment and Canadian-based BMH Systems – to help expand the company’s concrete plant offerings.
The Chattanooga-based Astec didn’t reveal details of the purchase, but the two companies had sales last year of about $50 million and the purchase is expected to help boost per-share earnings for the company. Astec will buy the companies with cash on hand.
In response to the purchase Monday, Astec shares were trading higher Monday.
“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,” Astec CEO Barry Ruffalo said. “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.”
The purchase of Concrete Equipment and BMH Systems come less than three years after Astec bought RexConn LLC in October 2017 for $26 million.