Astec Industries has announced the acquisition of two, full-line concrete batch plant manufacturers serving customers around the world.
The acquisition includes Concrete Equipment Company Inc. (CON-E-CO) and the Montreal-based BMH Systems Inc., which had combined annual sales in 2019 of about $50 million.
Astec funded the acquisitions with cash on hand, and will be immediately accretive to EPS. The price tag of the acquisitions was not disclosed.
“We are very pleased to welcome CON-E-CO and BMH Systems to Astec,” said Barry A. Ruffalo, chief executive officer of Astec.
“The addition of these highly regarded brands, along with our existing RexCon brand of concrete products will significantly strengthen our ability to serve our customers’ needs – rock to road. By bringing these product lines together, our global customers will have access to the most robust line of concrete products in the infrastructure industry.”
BMH Systems, headquartered in Montreal, Quebec, specializes in high performance concrete batch plants, bagging plants and custom batch plants to service the needs of infrastructure projects around the world. The company was founded more than 40 years ago on the south shore of Montreal, and has provided concrete solutions to more than 1,000 projects around the world.
The integration of the BMH Systems product lines into Astec provides a comprehensive concrete plant offering in North America, enhances engineering expertise, creates cost synergy opportunities and delivers a strong platform to promote additional asphalt plant sales in the Canadian market.
CON-E-CO, based in Blair, Nebraska, engineers, manufactures and supports a complete line of portable and stationary concrete batch plants, mixers, material handling systems and dust control.
CON-E-CO’s complementary brands and product lines will enable Astec to better compete in the concrete market, while leveraging sales and purchasing across the combined organizations.
“Both organizations are an excellent cultural fit with Astec, as they are customer focused, innovative and performance-oriented,” Ruffalo said. “These acquisitions also reflect our disciplined capital allocation process, and we maintain significant financial flexibility as we continue to effectively manage our operations in this unprecedented environment.”