Astec Industries Q1 Profit, Revenue Rise; To Acquire TerraSource For $245 Mln Cash

(RTTNews) - Astec Industries, Inc. (ASTE), a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production, Tuesday reported a profit of $14.3 million or $0.62 per share for the first quarter, significantly higher than $3.4 million or $0.15 per share in the same quarter a year ago, primarily helped by growth in revenue.

Excluding one-time items, profit was $20.3 million or $0.88 per share, up from $7.8 million or $0.34 per share in the prior year.

Income from operations increased to $20.5 million from $6.3 million last year.

Sales for the quarter grew 6.5% to $329.4 million from $309.2 million in the previous year.

Additionally, the company said it has agreed to acquire TerraSource Holdings, LLC, a manufacturer of material sizing equipment, for $245 million in cash.

Astec expects the acquisition to bring in annual run-rate synergies of about $10 million by the end of the second year. The company also expects an adjusted EBITDA multiple of 5.9x adjusted for expected tax benefits of approximately $15 million.