Company: ASTE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000792987-25-000064
Chunk: 11

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 Transaction costs of $4.3 million were recorded in "Cost of sales" in the Consolidated Statements of Operations during the three months ended September 30, 2025. Transaction costs of $3.8 million and $6.0 million were recorded in "Selling, general and administrative expenses" in the Consolidated Statements of Operations during the three and nine months ended September 30, 2025, respectively.

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The following table summarizes the preliminary purchase price allocation for the Acquisition, which is subject to change as the Company continues to evaluate the fair value of the assets acquired and liabilities assumed:(in millions)AmountPayment to equity holders$176.4 Payment of TerraSource's outstanding debt71.9 Transaction expenses paid on behalf of the seller4.1 Aggregate purchase consideration252.4 Identifiable assets acquired:Cash, cash equivalents and restricted cash3.9 Trade receivables, contract assets and other receivables, net20.1 Inventories58.4 Other current assets11.0 Property and equipment, net20.4 Intangible assets, net127.2 Other long-term assets6.0 Total assets acquired247.0 Identifiable liabilities assumed:Current liabilities43.7 Long-term liabilities36.0 Total liabilities assumed79.7 Total identifiable net assets167.3 Goodwill$85.1 The preliminary purchase price allocation presented above was based on management's estimate of the fair values of the acquired assets and assumed liabilities using valuation techniques including the income, market and cost approaches. The goodwill is attributable to the differences between the estimated fair value of the consideration transferred and the estimated fair value of the assets acquired, and liabilities assumed. Goodwill of $15.4 million is expected to be deductible for tax purposes.The following table summarizes the identifiable definite-lived intangible assets acquired. All intangible assets acquired in the TerraSource acquisition are subject to amortization:(in millions except useful lives)Fair ValueEstimated Useful Life (in years)Trade Names$7.8 10Patents5.010Customer Relationships110.010Other4.43 - 5Total identifiable definite-lived intangible assets acquired$127.2 The acquired TerraSource business contributed revenues and a net loss of $40.5 million and $4.7 million, respectively, during the three months ended September 30, 2025.Pro Forma Financial InformationThe following unaudited pro forma summary information reflects the consolidated results of the Company's operations