Astec Buys Chipper/Grinder Manufacturer Peterson Inc.
Posted on August 1, 2007
Astec Industries, Inc. has finalized its previously announced purchase of Peterson, Inc. located in Eugene, Ore. The final purchase price including closing adjustments was $21.1 million with the possibility of additional payments of up to $3,000,000 in total based on Peterson's 2008 and 2009 financial results. The company also paid off approximately $7 million of outstanding Peterson debt. Under a separate contract, the Company agreed to purchase at a future date all of the real estate and improvements used by Peterson for approximately $7 million
Peterson is a manufacturer of whole-tree pulpwood chippers, horizontal grinders and blower trucks. The company will continue to operate from its Eugene headquarters under the name Peterson Pacific Corp. Peterson's average sales per year for the last three fiscal years (ending on June 30, 2007) were approximately $66,000,000.