Astec Industries, Inc. has entered into a definitive agreement to sell its Roadtec and Carlson paving product businesses to Komatsu America Corp., a Georgia corporation and subsidiary of Komatsu Ltd. The transaction involves the sale of Roadtec, Inc. and Carlson Paving Products, Inc., two wholly owned subsidiaries of Astec, to Komatsu America Corp.
Under the terms of the Stock Purchase Agreement signed on November 12, 2026, the aggregate purchase price is set at $75,000,000 in cash on a cash-free, debt-free basis. This figure is subject to customary closing adjustments, including working capital adjustments and deductions for specified debt-like items and transaction expenses.
The Roadtec Business, based in Chattanooga, Tennessee, designs and manufactures equipment used in road construction and resurfacing. This includes highway-class and commercial-class asphalt pavers, paver screeds, Shuttle Buggy material transfer vehicles, cold planers, and related aftermarket parts and rebuild services. The business is reported within Astec’s Infrastructure Solutions segment and generates approximately $145 million in annualized revenue.
Astec expects to realize approximately $65 million in total expected cash proceeds and tax benefits from the sale. The company stated that the divestiture will eliminate associated operating losses and be accretive to its annualized earnings per share (EPS). It is also expected to improve Astec's adjusted EBITDA margin by approximately 200 basis points.
The transaction is expected to close in the first quarter of 2027, subject to the satisfaction of customary closing conditions. These conditions include the absence of any law preventing the closing, the accuracy of representations and warranties, the completion of a pre-closing restructuring, and the entry into retention agreements with certain employees.
