Astec Industries, Inc. Announces Acquisition of RexCon LLC
02 October 2017 - 9:30PM
Astec Industries, Inc. (Nasdaq:ASTE) today announced the
acquisition of substantially all of the assets and liabilities of
RexCon LLC, one of the leading full-line concrete batch plant
manufacturers in the U.S. The aggregate purchase price for the
assets is $26 million, which was funded through cash on hand.
“We are very pleased to welcome RexCon to the
Astec Industries family of companies. The acquisition of
RexCon reflects our stated strategy to drive focused growth, both
organically and through acquisitions of strong companies, that
serve the infrastructure, aggregate and mining, and energy
industries,” commented Benjamin G. Brock, Chief Executive Officer
of Astec Industries, Inc.
Mr. Brock concluded, “RexCon is a successful,
profitable company with a reputation for innovative technology and
dependable quality products. We are a match culturally and in
our approach to business. We thank the owners, Jake Jacobs
and Mike Redmond, for their collaborative efforts in finalizing
this transaction, and we are pleased that they will continue to run
and work to grow RexCon, as a part of Astec Industries, joining our
Energy Group.”
Investor Conference Call and Web
SimulcastAstec will conduct a conference call on Monday,
October 2, 2017, at 9:00 A.M. Eastern Time to review and to provide
additional detail regarding this announcement, as well as the
substantial design upgrades to pellet plants to achieve full
production also announced this morning. The number to call for this
interactive teleconference is (877) 407-9210. International callers
should dial (201) 689-8049. Please reference Astec Industries.
The Company will also provide an online Web
simulcast and rebroadcast of the conference call. The live
broadcast of Astec’s conference call will be available online at
the Company’s website: www.astecindustries.com/conferencecalls. An
archived webcast will be available for 90 days at
www.astecindustries.com.
A replay of the conference call will be
available through midnight on Monday, October 16, 2017 by dialing
(877) 481-4010, or (919) 882-2331 for international callers,
Conference ID #20494. A transcript of the conference call will be
made available under the Investor Relations section of the Astec
Industries, Inc. website within 5 business days after the call.
About RexConRexCon LLC is a
U.S. manufacturer of high-quality stationary and portable, central
mix and ready mix concrete batch plants, concrete mixers, and
concrete paving equipment. RexCon specializes in providing
portable, high-production concrete equipment to contractors and
producers worldwide in a totally integrated turnkey production
system, including customized site layout and design engineering,
batch plants, mixers, water heaters and chillers, ice production
and delivery systems, material handling conveyors, gensets and
power distribution, cement silos and screws, central dust
collection, aggregate heating and cooling systems, batch automation
controls, and batch office trailers. Top-of-the-Line
componentry coupled with firsthand experience producing and paving
concrete results in superior equipment. More information on RexCon
and its products can be found at www.rexcon.com.
About Astec Industries,
Inc.Astec Industries, Inc. is a manufacturer of
specialized equipment for asphalt road building; aggregate
processing; oil, gas and water well drilling; and wood processing.
Astec’s manufacturing operations are divided into three primary
business segments: road building and related equipment
(Infrastructure Group); aggregate processing and mining equipment
(Aggregate and Mining Group); and equipment for the extraction,
production and combustion of fuels, biomass production, and water
drilling equipment (Energy Group).
Forward-Looking StatementsThe
information contained in this press release contains
“forward-looking statements” (within the meaning of the Private
Securities Litigation Reform Act of 1995) regarding the future
performance of the Company, including statements about the effects
on the Company from the future performance of acquired businesses,
low oil prices, the global mining slow down, the strong U.S.
Dollar, and the impact of a long-term highway bill in the United
States. These forward-looking statements reflect management’s
expectations and are based upon currently available information,
and the Company undertakes no obligation to update or revise such
statements. These statements are not guarantees of performance and
are inherently subject to risks and uncertainties, many of which
cannot be predicted or anticipated. Future events and actual
results, financial or otherwise, could differ materially from those
expressed in or implied by the forward-looking statements.
Important factors that could cause future events or actual results
to differ materially include: factors listed from time to time in
the Company’s reports filed with the Securities and Exchange
Commission, including but not limited to the Company’s annual
report on Form 10-K for the year ended December 31, 2016.
For Additional Information Contact: Benjamin G.
Brock Chief Executive Officer Phone: (423) 867-4210 Fax: (423)
867-4127 E-mail: bbrock@astecindustries.com orDavid C. Silvious
Vice President and Chief Financial OfficerPhone: (423) 899-5898Fax:
(423) 899-4456 E-mail: dsilvious@astecindustries.comor Stephen C.
AndersonVice President, Director of Investor Relations &
Corporate SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail:
sanderson@astecindustries.com
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