Astec Industries, a manufacturer of specialised equipment for asphalt road building, aggregate processing and concrete production, has announced the acquisition of two full-line global concrete batch plant manufacturers, Concrete Equipment Company Inc. (Con-E-Co) and BMH Systems Inc.
The two companies had combined annualised sales in 2019 of around US$50 million. The acquisitions were funded with cash on hand and the terms of the transactions were not disclosed.
Con-E-Co is headquartered in Nebraska, US, engineers, manufactures and supports a portable and stationary concrete batch plants, mixers, material handling systems and dust control. The company was part of Oshkosh Corp.
BMH Systems, based in Quebec, Canada, specialises in concrete batch plants, bagging plants and custom batch plants to service the needs of infrastructure projects globally.
Barry A. Ruffalo, CEO, Astec, said, “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.
“Both organizations are an excellent cultural fit with Astec, as they are customer focused, innovative and performance-oriented. 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.”
Astec said the complementary brands and product lines will enable it to better compete in the concrete market while leveraging sales and purchasing across the combined organisations.