Komatsu has entered into an agreement to acquire the road construction equipment division of Astec.
The acquisition brings the Roadtec and Carlson brands of road paving and maintenance equipment into the Komatsu family, expanding Komatsu’s road construction capabilities and creating new opportunities in the construction equipment industry.
Komatsu will acquire the roadbuilding division for about US$75 million.
“Road construction plays an important role in building and maintaining the infrastructure that supports communities and economies in North America and around the world,” said Rod Bull, CEO, Komatsu North America. “The proposed acquisition would strengthen our ability to serve this essential market by bringing together Komatsu’s capabilities with two established brands known for strong products, experienced people and longstanding customer relationships.”
Equipment sold under the Roadtec and Carlson brands includes pavers, milling machines, material transfer vehicles and stabilizers.
The addition expands Komatsu’s range of solutions available to customers, creating a more comprehensive portfolio of roadbuilding equipment.
The proposed acquisition reflects Komatsu’s strategy of making investments that complement its core business and help address a broader range of industry needs.
“Komatsu has long recognized the strategic importance of road construction equipment and has considered opportunities to expand in this market for many years,” said Takuya Imayoshi, President and CEO of Komatsu Ltd. “North America is one of Komatsu’s key markets, and this acquisition reflects our continued commitment to investing in the region and strengthening our construction equipment business. By combining Roadtec’s and Carlson’s specialized expertise and technologies with Komatsu’s manufacturing, engineering and global capabilities, we aim to create greater value for customers and build a strong foundation for long-term growth, both in North America and in other markets over time.”
Roadtec, based in Chattanooga, Tennessee, generates about US$145 million in annual revenue. Astec expects the sale to eliminate losses associated with the business and improve its annual earnings per share.
Astec expects to receive about $65 million in combined cash proceeds and tax benefits from the sale.
The cash proceeds are expected to strengthen Astec’s balance sheet and provide greater financial flexibility to invest in its core businesses and pursue strategic acquisitions, consistent with the company’s capital allocation strategy.
The sale will also enable Astec to prioritize investment in its core asphalt, aggregates and concrete businesses, as well as growth opportunities in recycling, digital solutions and mining.
“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,” said Jaco van der Merwe, Astec President and CEO. “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.”
The transaction is expected to close Jan. 1, 2027, subject to customary closing conditions.
