Astec Industries acquires CWMF for $67.5 million, aiming for revenue growth and increased margins.
Quiver AI Summary
Astec Industries, Inc. has completed its acquisition of CWMF, LLC for $67.5 million in cash, which is expected to enhance Astec’s gross profit margins, adjusted EBITDA margins, and earnings per share. The acquisition aligns with Astec’s growth strategy and adds approximately $50 million in annual revenue, while staying within a net leverage ratio of 1.5 to 2.5 times adjusted EBITDA. Jaco van der Merwe, President and CEO of Astec, expressed confidence that CWMF's strong regional customer relationships and cultural fit will benefit the company and its customers, increasing capacity in the Infrastructure Solutions segment and creating growth opportunities. The acquisition is projected to yield synergies by the end of the first year.
Potential Positives
- Acquisition of CWMF expected to enhance gross profit margins, adjusted EBITDA margins, and earnings per share for Astec Industries.
- Strategic acquisition aligns with Astec's disciplined growth strategy, with CWMF bringing in annual revenue of approximately $50 million.
- Anticipation of synergies from the acquisition to be realized by the end of year one, contributing to operational efficiencies.
- Expected proforma net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA indicates a manageable debt level post-acquisition.
Potential Negatives
- Significant reliance on forward-looking statements may raise concerns among investors regarding future performance and risks associated with the acquisition.
- The acquisition price of $67.5 million could be seen as a substantial cash outlay, raising questions about the company's liquidity and financial stability post-transaction.
- The anticipated net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA indicates increased leverage, which could heighten financial risk if not carefully managed in changing market conditions.
FAQ
What is the value of Astec's acquisition of CWMF?
The acquisition of CWMF was completed for a purchase price of $67.5 million in cash, on a cash-free, debt-free basis.
How will the acquisition impact Astec's revenue?
Astec anticipates the acquisition will enhance gross profit margins, EBITDA margins, and earnings per share, boosting overall revenue.
What are the expected synergies from the acquisition?
Astec expects synergies from the CWMF acquisition to be realized by the end of year one.
What is Astec's anticipated net leverage ratio post-acquisition?
The expected proforma net leverage ratio is projected to be between 1.5 to 2.5 times net debt to adjusted EBITDA.
What does CWMF specialize in?
CWMF specializes in portable and stationary asphalt plant equipment, including drum mixers and reclaimed asphalt product (RAP) crushers.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ASTE Insider Trading Activity
$ASTE insiders have traded $ASTE stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $ASTE stock by insiders over the last 6 months:
- BAREND SNYMAN (Group President) sold 2,498 shares for an estimated $117,947
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ASTE Revenue
$ASTE had revenues of $350.1M in Q3 2025. This is an increase of 20.14% from the same period in the prior year.
You can track ASTE financials on Quiver Quantitative's ASTE stock page.
$ASTE Hedge Fund Activity
We have seen 112 institutional investors add shares of $ASTE stock to their portfolio, and 95 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ACK ASSET MANAGEMENT LLC added 701,500 shares (+inf%) to their portfolio in Q3 2025, for an estimated $33,763,195
- VICTORY CAPITAL MANAGEMENT INC removed 538,785 shares (-34.5%) from their portfolio in Q3 2025, for an estimated $25,931,722
- PENN CAPITAL MANAGEMENT COMPANY, LLC added 209,548 shares (+inf%) to their portfolio in Q3 2025, for an estimated $10,085,545
- HARVEY PARTNERS, LLC added 163,155 shares (+48.3%) to their portfolio in Q3 2025, for an estimated $7,852,650
- NEW YORK STATE COMMON RETIREMENT FUND added 134,896 shares (+1800.5%) to their portfolio in Q3 2025, for an estimated $6,492,544
- AMERICAN CENTURY COMPANIES INC added 132,095 shares (+24.5%) to their portfolio in Q3 2025, for an estimated $6,357,732
- JACOBS LEVY EQUITY MANAGEMENT, INC removed 115,994 shares (-60.8%) from their portfolio in Q3 2025, for an estimated $5,582,791
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
- Revenue growth potential, margin expansion, EPS accretive
- Purchase price of $67.5 million in cash, on a cash-free, debt-free basis
- Synergies expected by end of year one
- Expected proforma net leverage ratio of 1.5 - 2.5x net debt/adjusted EBITDA
CHATTANOOGA, Tenn., Jan. 02, 2026 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (NASDAQ: ASTE) (“Astec” or “Company”) today announced the completion of its acquisition of CWMF, LLC (“CWMF”). Astec anticipates the acquisition will increase gross profit margins, adjusted EBITDA margins and earnings per share.
Jaco van der Merwe, Astec President and CEO said: “We are pleased to welcome the CWMF employees into the Astec family. CWMF has strong customer relationships in the Midwest, South-Central and Great Lakes regions of the United States and is an excellent cultural fit with Astec. The addition enhances our ability to serve our customers, increases capacity in our Infrastructure Solutions segment and adds further growth opportunities to generate enhanced shareholder value.”
Brian Harris, Chief Financial Officer, commented, “The addition of CWMF is consistent with our disciplined growth strategy. With annual revenue of approximately $50 million, we fully expect CWMF will enhance our earnings and be accretive while we will stay within our previously disclosed, disciplined leverage range.”
About ASTEC
Astec is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that includes our aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance
About CWMF
CWMF ( https://cwmfcorp.com/ ) is a United States manufacturer of portable and stationary asphalt plant equipment, including drum mixers, baghouses, reclaimed asphalt product (RAP) crushers, scalping screens, and complete plant components. CWMF equipment is known for durability, craftsmanship, and practical design.
Forward Looking Statements
Safe Harbor Statements under the Private Securities Litigation Reform Act.
This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flow, changes in operations, operating improvements, businesses in which we operate, anticipated benefits from the CWMF acquisition, and the United States economy. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," “supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.
For Additional Information Contact:
Steve Anderson
Senior Vice President of Administration and Investor Relations
Phone: (423) 899-5898
E-mail: [email protected]
For more information, visit astecindustries.com and follow us on social media.
LinkedIn
https://www.linkedin.com/company/astecindustries/
Facebook
https://www.facebook.com/astecindustries
Instagram
https://www.instagram.com/astec_industries/
YouTube
https://www.youtube.com/@astec6306/featured
Twitter @astecindustries
