Astec Industries has entered into a definitive agreement to sell its road construction equipment business, including the Roadtec and Carlson brands, to Komatsu America Corp., a subsidiary of Japan’s Komatsu Ltd., for an enterprise value of 75 million dollars, subject to customary closing adjustments. The agreement was announced on November 12.
The Roadtec business, based in Chattanooga, Tennessee, designs, manufactures and supports equipment used in road construction and resurfacing, including highway class and commercial class asphalt pavers, paver screeds, Shuttle Buggy material transfer vehicles and cold planers, plus aftermarket parts and rebuild services. It is reported within Astec’s Infrastructure Solutions segment and generates approximately 145 million dollars in annualized revenue, which puts the purchase price at roughly 0.5 times sales.
For Astec, the logic is exit from a loss maker: the company said the divestiture is expected to eliminate associated operating losses and be accretive to its annualized earnings per share, and it expects to realize approximately 65 million dollars in total cash proceeds and tax benefits from the sale. For Komatsu, the deal fills a gap in its construction lineup, adding a paving portfolio alongside its earthmoving, quarry and mining fleets, and gives it an established US manufacturing and dealer footprint in a segment it has not previously served.
The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions. Komatsu has put the expected closing date at January 1, 2027.