Komatsu to acquire Roadtec, Carlson brands in $75M deal
Astec division generated $145M in revenue
Japanese OEM Komatsu has agreed to acquire the road construction equipment business of U.S.-based manufacturer Astec Industries for an enterprise value of $75 million, adding the Roadtec and Carlson brands to its portfolio, Astec said in a release on Nov. 12.
Komatsu said in a separate release that the acquisition would expand its equipment lineup to include asphalt pavers, milling machines, material transfer vehicles and stabilizers.
Astec said in its release that the business generates approximately $145 million in annualized revenue. Astec’s planned divestiture follows its acquisition of asphalt plant equipment manufacturer CWMF.
The agreement follows increased North American equipment sales for Komatsu, as regional construction equipment sales rose 28.4% year over year to 179.8 billion yen ($1.1 billion) in the quarter ended Sept. 30, according to Komatsu’s Oct. 29 earnings presentation.
The acquisition is expected to close Jan. 1.
Komatsu President and Chief Executive Takuya Imayoshi said the company has considered expanding into road construction equipment for several years and views North America as a key market for investment.
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