Astec Industries, Inc. announced the completion of its acquisition of TerraSource Holdings, LLC on July 1, 2025. The transaction was finalized for $245 million in cash, on a cash-free, debt-free basis. The net purchase price is approximately $230 million when adjusted for an estimated $15 million net present value of anticipated tax benefits.
This strategic acquisition is expected to be accretive to earnings per share, enhance cash flow, and expand Astec's margins. TerraSource brings over $150 million in annual revenue, with more than 60% of its revenues derived from aftermarket parts and services, aligning with Astec's focus on recurring revenue streams.
Astec anticipates achieving annual run-rate synergies of approximately $10 million by the end of year two following the acquisition. The company also projects a proforma net leverage ratio of approximately 2.0x net debt/adjusted EBITDA by the end of 2025, demonstrating a disciplined approach to financing this growth.
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