Astec Industries has acquired the Concrete Equipment Company (CON-E-CO) and BMH Systems, two full-line concrete batch plant manufacturers serving customers around the world.
The two North American companies had combined annualised sales in 2019 of approximately US$50m. The acquisitions were funded with cash on hand and will be immediately accretive to EPS. Terms of the transactions were not disclosed.
“We are very pleased to welcome CON-E-CO and BMH Systems to Astec,” said Barry Ruffalo, CEO of US aggregates processing equipment company 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.”
Ruffalo said that the two acquisitions reflect Astec’s “disciplined capital allocation process, and we maintain significant financial flexibility as we continue to effectively manage our operations in this unprecedented environment.”
CON-E-CO, headquartered 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.
BMH Systems, based in Montreal, Canada, specializes in high performance concrete batch plants, bagging plants and custom batch plants to service the needs of infrastructure 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.
