CHATTANOOGA, Tenn., Aug. 4, 2011 /PRNewswire/ -- Astec Industries, Inc. (NASDAQ: ASTE) today announced that it has entered into a definitive agreement to acquire substantially all of the assets and certain liabilities of the GEFCO and STECO divisions of Blue Tee Corp.
GEFCO (formerly known as George E. Failing Company) is a leading manufacturer of portable drilling rigs and related equipment for the water well, environmental, groundwater monitoring, construction, mining and shallow oil & gas exploration and production industries. Established in 1931, GEFCO manufactures Failing, SpeedStar and King Oil Tools drilling rigs and equipment.
STECO is a leading manufacturer of transfer and dump trailers for the solid waste, scrap processing, construction and demolition industries. Established in the late 1950's, STECO was a pioneer in the development and production of hydraulic dump trailers.
Astec Industries has formed a new subsidiary, GEFCO, Inc., to operate the acquired businesses and will continue to manufacture the George E. Failing, SpeedStar, King Oil Tools and STECO equipment from the current Enid, Oklahoma headquarters. The transaction is expected to close during the fourth calendar quarter.
The total purchase price for the acquisition is approximately $26 million but is subject to certain closing adjustments.
Dr. J. Don Brock, Chairman and Chief Executive Officer, said, "We are delighted to welcome GEFCO and STECO to the Astec Industries family of companies. This acquisition adds a new range of products manufactured by Astec Industries, Inc. The gas and oil drilling equipment manufactured by GEFCO has numerous innovations that will enhance the American Augers line of gas and oil drilling equipment and directional drills. We believe that we can enhance the current operations by improving purchasing practices, reducing outsourced assembly items and by using our best practices. Additionally, under the leadership of Aaron Harmon, President, we look forward to growing the business, expanding the position in the energy market and providing innovative portable drilling equipment."
Aaron Harmon added, "I am excited about this move. This is a great opportunity, not only for GEFCO and STECO and our employees, but for our customers as well."
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.
The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about future performance of GEFCO/STECO and improvements to existing GEFCO/STECO business operations. These forward-looking statements reflect management's expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements.
SOURCE Astec Industries, Inc.