ASTEC INDUSTRIES INC (ASTE): M&A transaction — Astec completes $245M acquisition of TerraSource; expects $10M annual synergies

ASTEC INDUSTRIES INC

Acquisition of TerraSource completed for $245M cash; net purchase price $230M after ~$15M NPV of tax benefits.
Deal expected to be EPS accretive from day one; ~60% of TerraSource revenue from aftermarket parts/service.
Annual run-rate cost synergies of ~$10M expected by end of year two.
New credit facilities of up to $600M entered; proceeds used to fund acquisition and repay prior $250M revolver.
Proforma net leverage ratio ~2.0x net debt/adjusted EBITDA for 2025.

item 1.01 item 2.01 item 2.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ASTEC INDUSTRIES INC incurred credit facility of $600,000,000 with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto from time to time at Term SOFR plus an applicable margin ranging between 1.75% and 2.75% per annum, o maturing July 1, 2030.

Instrument: credit facility
Principal: $600,000,000
Counterparty: Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto from time to time
Rate: Term SOFR plus an applicable margin ranging between 1.75% and 2.75% per annum, o
Maturity: July 1, 2030
Event: incurrence

Exact text from the filing

Simultaneously with the Closing, on July 1, 2025 (the “Financing Effective Date”), the Company entered into a credit agreement (the “Credit Agreement”) that provides for (i) a revolving credit facility, a term loan facility, a swingline facility and a letter of credit facility, in an initial aggregate amount of up to $600,000,000, and (ii) an incremental facilities limit in an aggregate amount not to exceed $150,000,000 (collectively, the “Credit Facilities”).

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M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

ASTEC INDUSTRIES INC completed an acquisition involving TerraSource Holdings, LLC (Sellers: RLI TSG Holdings LLC, Milacron LLC, and others) for $245.0 million in cash on a cash-free, debt-free basis (closed 2025-07-01).

Action: acquisition
Counterparty: TerraSource Holdings, LLC (Sellers: RLI TSG Holdings LLC, Milacron LLC, and others)
Consideration: $245.0 million in cash on a cash-free, debt-free basis
Closing: 2025-07-01

Exact text from the filing

its previously announced Acquisition of TerraSource pursuant to the Purchase Agreement. The total consideration delivered at the Closing by the Company to the Sellers was $245.0 million in cash on a cash-free, debt-free basis, subject to a customary purchase price adjustment, as set forth in the Purchase Agreement. The Company financed the Acquisition and

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ASTEC INDUSTRIES INC filing history →

Source: SEC EDGAR

accession 0001104659-25-064747

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