Astec Industries, Inc. (Nasdaq: ASTE) has 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., that 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.
Prior to being acquired by Astec on November 1, 1999, Superior was owned by an Employee Stock Ownership Plan.
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, it was stated.
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, which is expected to occur on June 30, 2004, is contingent upon
customary conditions, including that the purchaser will receive financing to complete the acquisition.
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four business segments: aggregate processing and
mining equipment; asphalt production equipment; mobile asphalt paving
equipment; and underground boring, directional drilling and trenching equipment. Superior is part of the aggregate processing and mining equipment segment.