Astec Industries, Inc. entered into a definitive agreement to sell substantially all of the assets and transfer substantially all of the liabilities of Superior Industries of Morris, Inc.
Superior, a wholly owned subsidiary of Astec Industries, Inc., manufactures stationary and portable conveyor systems and components.
The planned sale is a result of an unsolicited proposal presented to Astec by the management and employees of Superior, along with a group of local investors in Minnesota.
The purchase price for the assets and liabilities of Superior is approximately $24.3 million, which amount is subject to adjustment based on the performance of Superior in the second quarter. Proceeds will be used for additional working capital to support anticipated growth or to reduce debt levels and interest expense, both of which are in line with previously stated corporate objectives.
Astec Industries, Inc. will license from the purchaser certain intellectual property relating to conveyer components. The purchaser has agreed to be a supplier of certain components to Astec Industries, Inc. for a period of one year.
Closing is expected by the end of this month.
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