Astec Industries Inc. announced the acquisition of two full-line concrete batch plant manufacturers serving customers around the world. It acquired Concrete Equipment Company Inc. (Con-E-Co) and BMH Systems Inc., which had combined annualized sales in 2019 of approximately $50 million. The acquisitions were funded with cash on hand and will be immediately accretive to EPS. Terms of the transactions were not disclosed.
“We are very pleased to welcome Con-E-Co and BMH Systems to Astec,” said Barry A. Ruffalo, CEO, Astec, Chattanooga, Tenn. “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. 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. These acquisitions also reflect our disciplined capital allocation process, and we maintain significant financial flexibility as we continue to effectively manage our operations in this unprecedented environment.”
Con-E-Co, headquartered in Blair, Neb., engineers, manufactures and supports a portable and stationary concrete batch plants, mixers, material handling systems and dust control. The company was part of Oshkosh Corp.
Astec said the complementary brands and product lines will enable it to better compete in the concrete market while leveraging sales and purchasing across the combined organizations.
BMH Systems, headquartered in Montreal, Quebec, Canada, specializes in concrete batch plants, bagging plants and custom batch plants to service the needs of infrastructure projects globally.
The integration of the BMH Systems product lines into Astec is expected to provide a comprehensive concrete plant offering in North America, enhance engineering expertise, create cost synergy opportunities and deliver a strong platform to promote additional asphalt plant sales in the Canadian market.