Astec completes acquisition of TerraSource Holdings

Astec (ASTE) Industries announced the completion of its acquisition of TerraSource. Astec anticipates the acquisition will increase gross profit margins, adjusted EBITDA margins and earnings per share as aftermarket parts and service represent approximately 60% of TerraSource revenues and 80% of gross profit. The acquisition provides meaningful run-rate cost synergies, primarily from procurement savings. 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.” 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