Astec Industries came to an agreement to acquire TerraSource, a manufacturer with equipment lines in crushing, screening, material handling, feeding and other areas related to aggregates.
Astec reported the deal upon publishing its first-quarter 2025 financial results. Under the terms of the agreement, Astec is acquiring TerraSource for $245 million.
“TerraSource is a manufacturer and distributor of similar equipment, serving adjacent markets in materials processing equipment and related aftermarket parts,” says Jaco van der Merwe, CEO of Astec. “They have annual revenues in excess of $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,” van der Merwe says. “We look forward to having the hard-working TerraSource employees join the Astec team.”
Astec expects its TerraSource deal to formally close early in the third quarter this year.
“The pending acquisition of TerraSource is consistent with our disciplined growth strategy,” says Brian Harris, CFO of Astec. “It will add scale, improve our aftermarket parts mix, expand our margins and quality of earnings and is expected to be accretive from Day 1.”
TerraSource CEO Kevin Hambrice and global director Donald Ruppert appeared on an episode of Pit & Quarry’s “Drilling Deeper” podcast in March, offering some history about the company, its brands and recent equipment and technology developments. Listen to Episode 37 of the podcast featuring the TerraSource leaders here.
Related: TerraSource Global’s Kevin Hambrice featured in P&Q Profile article (2024)
