Company: ASTE
Filing Date: 2025-05-02
Form Type: 8-K
Source: 0001104659-25-044104
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Company: ASTEC INDUSTRIES INC
Filing Date: 2025-05-02
Form: 8-K
Item: Item 1.01
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Item 1.01. Entry Into a Material Definitive
Agreement.

On April 28, 2025, Astec Industries, Inc. (the
"Company") entered into a Membership Interest Purchase Agreement (the “ Agreement”) with RLI TSG Holdings LLC, Milacron
LLC and the other seller parties thereto (collectively, the “ Sellers”), RLIH, LLC (the “ Sellers’ Representative”)
and TerraSource Holdings, LLC, a Delaware limited liability company (“ TerraSource”), a market-leading manufacturer of material
processing equipment and related aftermarket parts serving complementary crushing, screening and separation applications and headquartered
in Missouri. Pursuant to the Agreement, on the terms and subject to the conditions therein, the Company has agreed to acquire 100% of
the equity interests of TerraSource (such acquisition, the “ Transaction”).

Under the terms of the Agreement, the total consideration
payable by the Company to the Sellers will be $245.0 million on a cash-free, debt-free basis, subject to a customary purchase price adjustment,
as set forth in the Agreement.

The closing of the Transaction (the “ Closing”)
is subject to certain customary conditions, including (i) the accuracy of the representations and warranties of each of the parties to
the Agreement, subject to customary standards of materiality, (ii) the expiration or earlier termination of any required waiting periods
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (iii) the compliance in all material respects by the parties
of their respective covenants and obligations under the Agreement, and (iv) the absence of a Material Adverse Effect (as defined in the
Agreement).

The Agreement contains customary representations,
warranties and covenants. From the date of the Agreement until the Closing, TerraSource is required to conduct its business in the ordinary
course of business in all material respects and to not take certain actions with respect to its business without the Company’s prior
written consent. The Agreement contains customary termination rights, including that the parties may terminate the Agreement if the transactions
contemplated by the Agreement have not been completed by August 1, 2025. In addition, the Company is required to pay TerraSource a termination
fee of $15 million if the Agreement is terminated, subject to certain conditions, following the failure of the Company to consummate the
Closing at a time when all conditions to Closing have been satisfied or waived in