Astec Acquires Peterson Inc.

Astec Industries, Inc. has entered into a definitive agreement to acquire 100 percent of Peterson, Inc., Eugene, Oregon.

Peterson is a manufacturer of whole-tree pulpwood chippers, horizontal grinders and blower trucks. The company will continue to operate from its Eugene headquarters under the name Peterson Pacific Corp. The transaction is expected to close during the third calendar quarter.

The total purchase price for the acquisition is approximately $34 million.

J. Don Brock, chairman and CEO, said, "We are delighted to welcome Peterson Pacific Corp. to the Astec Industries family of companies. The acquisition of Peterson adds a new dimension to the range of products manufactured by Astec Industries, Inc. The processing equipment manufactured by Peterson has numerous components that closely resemble those found on our track-mounted crushers and Roadtec milling machines. We believe that we can enhance the operations of Peterson by improving purchasing practices, reducing outsourced assembly items and by using our best practices. Our Focus Group initiatives are very applicable to Peterson's business. Additionally, the existing leadership team of Neil Peterson, President, and Larry Cumming, CEO, will continue to manage the business after the acquisition."