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News  ›  GlobeNewswire Inc.

Astec Completes Acquisition of CWMF, LLC

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Astec Completes Acquisition of CWMF, LLC

Astec Industries completed its acquisition of CWMF, LLC for $67.5 million in cash. The deal is expected to increase gross profit margins, adjusted EBITDA margins, and earnings per share. CWMF, with approximately $50 million in annual revenue, manufactures portable and stationary asphalt plant equipment and strengthens Astec's Infrastructure Solutions segment with enhanced capacity and regional presence in the Midwest, South-Central, and Great Lakes regions.

Insights
ASTE   positive

The acquisition is strategically sound with expected revenue growth, margin expansion, EPS accretion, and synergies by end of year one. Management emphasizes disciplined growth strategy and staying within leverage targets, demonstrating financial prudence. The deal adds capacity, customer relationships, and growth opportunities while maintaining cultural fit.