Astec Industries (NASDAQ: ASTE) completes $67.5 million acquisition of CWMF

Astec Industries, Inc. (NASDAQ: ASTE) announced the completion of its acquisition of CWMF, LLC for $67.5 million in cash on a cash-free, debt-free basis, according to a company statement.

CWMF generates approximately $50 million in annual revenue and manufactures portable and stationary asphalt plant equipment, including drum mixers, baghouses, reclaimed asphalt product crushers, scalping screens, and complete plant components. The company serves customers in the Midwest, South-Central and Great Lakes regions of the United States.

“We are pleased to welcome the CWMF employees into the Astec family,” said Jaco van der Merwe, Astec President and CEO. “CWMF has strong customer relationships in the Midwest, South-Central and Great Lakes regions of the United States and is an excellent cultural fit with Astec.”

Astec expects the acquisition to increase gross profit margins, adjusted EBITDA margins and earnings per share. The company anticipates synergies by the end of year one and expects a proforma net leverage ratio of 1.5 to 2.5 times net debt to adjusted EBITDA.

“The addition of CWMF is consistent with our disciplined growth strategy,” said Brian Harris, Chief Financial Officer. “We fully expect CWMF will enhance our earnings and be accretive while we will stay within our previously disclosed, disciplined leverage range.”