Company: ASTE
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000792987-25-000029
Chunk: 20

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
reement to Acquire TerraSourceOn April 28, 2025, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") with RLI TSG Holdings LLC, K-Tron Investment Co. and other sellers party thereto (collectively, the "Sellers"), pursuant to which, subject to the satisfaction of customary conditions, the Company will acquire 100% of the equity interests of TerraSource Holdings, LLC, a market-leading manufacturer of material processing equipment and related aftermarket parts serving complementary crushing, screening and separation applications and headquartered in Missouri (such acquisition, the "Transaction"). The total cash consideration payable to the Sellers is $245.0 million, subject to a customary purchase price adjustment. The acquisition is expected to be accounted for as a business combination.In connection with the Transaction, on April 28, 2025, the Company entered into a debt commitment letter (the "Commitment Letter") with Wells Fargo Bank, National Association, and the other lender parties thereto (collectively, the "Lenders"), pursuant to which, and subject to the terms and conditions set forth therein, the Lenders committed to provide provide a $500.0 million senior secured credit facility (which may be increased by up to $50.0 million), consisting of (i) a revolving credit facility in an aggregate principal amount of $150.0 million and (ii) a term loan facility in an aggregate principal amount of $350.0 million (the "Senior Credit Facility"). The Company intends to use the proceeds of the term loan facility, together with cash on hand, to fund the Transaction, to refinance the Company’s existing credit facilities and to pay for fees, costs and expenses incurred in connection with the foregoing. The funding of the Senior Credit Facility provided for in the Commitment Letter is contingent on the satisfaction of customary closing conditions.The Transaction, which is subject to the satisfaction of regulatory clearance and other customary closing conditions, is targeted to close in the third quarter of 2025.

17

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The financial condition, results of operations and cash flows discussed in this Management's Discussion and Analysis of Financial Condition and Results of Operations are those of Astec Industries, Inc. and its consolidated subsidiaries, collectively, the "Company," "Astec," "we," "our" or "us." The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated