Astec Sells American Augers To Ditch Witch
Astec Industries, Inc. said it has entered into agreements to sell its American Augers, Inc. subsidiary as well as certain assets related to the Trencor large trencher product line of Astec Underground, Inc. to The Charles Machine Works, Inc., Perry, Okla. for approximately $55 million in cash, subject to closing adjustments. Astec said it expects the sale to close before the end of the year.
Not included in the sale are the American Augers vertical oil and gas drilling rig product line and the four-track surface miner product line manufactured at Astec Underground. The vertical oil and gas drill rig product line will be relocated to GEFCO, Inc., a subsidiary of Astec Industries, Inc. in Enid, Okla.
Astec will continue to manufacture and expand the surface miner product line at its Astec Underground facility where it will also continue to manufacture its newly developed line of high pressure pump trailers used for fracking and well servicing.
The total revenues of the sold business unit and product line were $42 million for the nine months ended September 30, 2012. This is the second sale this year for Astec, which sold its utility trencher and drill lines to Toro earlier this year.
Dr. J. Don Brock, the company’s chairman and CEO said, "We acquired the Trencor operation in 1988 and American Augers in 1999. These businesses have been very cyclical through the years. Our strategy has been to buy and grow companies; however, we sold our utility trencher and drill line to Toro earlier this year, and the opportunity became available to sell American Augers and the Trencor line of large trenchers at Astec Underground."
Earlier this year Astec also reorganized into four primary business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.Edit Module