Astec Enters Into Definitive Agreement to Sell Roadtec Business to Komatsu
Key Highlights
- ➤Roadtec Business sale to Komatsu agreed at $75 million enterprise value
- ➤Roadtec generates approximately $145 million in annualized revenue
- ➤Divestiture expected to be EPS-accretive by eliminating operating losses
- ➤Adjusted EBITDA margin expected to improve approximately 200 basis points
- ➤Transaction expected to close in first quarter of 2027
Expert Statements
Jaco van der Merwe, President and Chief Executive Officer of Astec
“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. This transaction is consistent with our strategy to sharpen our portfolio focus, drive sustainable margin expansion and allocate capital toward our core businesses and long-term growth opportunities.”
* Sharpens focus on our higher margin product portfolio, accelerating progress towards Astec’s 2030 strategic objectives * Enterprise value of $75 million, subject to customary closing adjustments * Expected to be accretive to annualized EPS through the divestiture of a business generating operating losses and to improve the Company’s adjusted EBITDA margin by approximately 200 basis points * Strengthens financial flexibility to support organic growth and strategic investments CHATTANOOGA, Tenn., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) (“Astec” or the “Company”) today announced that it has entered into a definitive agreement to sell its road construction equipment business, including the Roadtec and Carlson brands (the “Roadtec Business”), to Komatsu America Corp., a subsidiary of Komatsu Ltd. (collectively, “Komatsu”), for an enterprise value of $75 million, subject to customary closing adjustments.
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