Quarry learns how a recent US$245 million acquisition will benefit Astec Industries and its global customers.
Connection is at the heart of everything Astec Industries does. With 16 brands and thousands of products, the business aims to deliver technology to industries, building the infrastructure that physically connects the world.
This drive to connect customers with the latest technology is what has led the business to sign a definitive agreement for the acquisition of TerraSource.
Headquartered in St Louis, Missouri, TerraSource specialises in material handling equipment and related aftermarket parts and services for crushing and separating applications.
TerraSource was formed in 2012 when Gundlach Crushers, Jeffrey Rader and Pennsylvania Crusher merged. The company has a large and diverse portfolio of high-quality equipment, precision original equipment manufacturer parts, and the ability to provide key technical expertise.
Its range of solutions includes primary and secondary crushing solutions, multiple feeder options, vibrating screens, decanter centrifuges, packaged fluid recycling systems, vertical cuttings dryers, vibratory centrifuges, coanda screens, shale shakers, and pumping solutions.
The definitive agreement was confirmed at the reveal of Astec’s first quarter results, where Astec chief executive officer Jaco van der Merwe broke the news.
“TerraSource is a manufacturer and distributor of similar equipment, serving adjacent markets in materials processing equipment and related aftermarket parts,” he said.
“They have annual revenues in excess of US$150 million, a strong portfolio of industry leading brands and a track record of high performance. TerraSource adds significant growth and value creation opportunities including new markets, aftermarket parts and accretive margins. We look forward to having the hard-working TerraSource employees join the Astec team.”
Astec Industries chief financial officer Brian Harris said the acquisition was a result of the company’s definitive growth strategy.
“It will add scale, improve our aftermarket parts mix, expand our margins and quality of earnings and is expected to be accretive from day one,” he said.
Right Lane Industries confirmed it had agreed to sell TerraSource to Astec Industries for a purchase price of US$245 million.
“Congratulations to our exceptional colleagues at TerraSource, Right Lane, and Hillenbrand for this successful collaboration,” TerraSource chief executive officer Kevin Hambrice said.
“The transformation journey has been remarkable, and I’m confident our partnership with Astec will enable us to continue our extraordinary trajectory, further enhance our market leadership, and deliver exceptional products and services to our customers.”
The announcement comes after Right Lane Industries gained a 51 per cent stake in TerraSource from Hillenbrand Inc in 2021.
“The partnership with Right Lane was the right choice for us and has positioned TerraSource very well for continued growth,” Hillenbrand chief executive officer Kim Ryan said.
“We are confident that TerraSource will continue to flourish under Astec’s ownership, and we wish them every success.” •
For more information, visit astecindustries.com
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