Komatsu to Buy Astec's Roadtec Unit for $75 Million
The sale of a loss-making road-paver unit is expected to lift Astec's adjusted EBITDA margin by about 200 basis points.
Astec Industries, Inc. (ASTE) agreed to sell its road construction equipment business, including the Roadtec and Carlson brands, to Komatsu America Corp., a subsidiary of Komatsu Ltd., for an enterprise value of $75 million, subject to customary closing adjustments.
The Chattanooga-based Roadtec Business designs, manufactures and supports highway-class and commercial-class asphalt pavers, paver screeds, Shuttle Buggy material transfer vehicles and cold planers, plus aftermarket parts and rebuild services. It is reported in Astec’s Infrastructure Solutions segment and generates approximately $145 million in annualized revenue.
The company said the divestiture is expected to eliminate associated operating losses, be accretive to annualized EPS and improve adjusted EBITDA margin by approximately 200 basis points. Astec also said the sale sharpens focus on a higher-margin product portfolio and accelerates progress toward its 2030 strategic objectives.
Astec expects to realize about $65 million in total expected cash proceeds and tax benefits. The company said the cash is expected to strengthen the balance sheet and provide flexibility to invest in core asphalt, aggregates and concrete platforms, as well as growth in recycling, digital solutions and mining.
Jaco van der Merwe, Astec President and Chief Executive Officer, said, “The Roadtec Business has been an important part of Astec, and I want to thank our Roadtec employees for their dedication and contributions and our customers for their partnership and loyalty over the years. We are pleased to have entered into this agreement with Komatsu, a strategic buyer who values the Roadtec brand, technology, engineering expertise and team members.”
He added that the transaction is consistent with a strategy to sharpen portfolio focus, drive sustainable margin expansion and allocate capital toward core businesses and long-term growth opportunities.
The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions. Evercore is serving as financial advisor to Astec, and Alston & Bird LLP is serving as legal counsel.
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