Company: ASTE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000792987-25-000064
Chunk: 66

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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 the Company's results of operations, financial position or cash flows.Recent accounting guidance not discussed above is not applicable, did not have or is not expected to have a material impact on the Company.

Note 2. Acquisition

On July 1, 2025 (the "Closing Date"), the Company completed the acquisition of TerraSource Holdings, LLC ("TerraSource"), a market-leading manufacturer of material processing equipment and related aftermarket parts serving complementary crushing, screening and separation applications (such acquisition, the "Acquisition"). Pursuant to the Acquisition, the Company acquired 100% of the equity interests of TerraSource. The total cash consideration paid for by the Company to the sellers of TerraSource was $252.4 million. The Acquisition provides the Company with access to adjacent markets in materials processing equipment and related aftermarket parts. The acquired TerraSource business is included in the Company's Materials Solutions reportable segment.The Company financed the purchase price and related fees and expenses using net proceeds from a credit agreement entered into with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto from time to time (the "2025 Credit Agreement"). See Note 8, Debt for additional details on financing transactions.Total transaction costs, inclusive of the amortization of the acquisition-related inventory fair value step-up, of $8.1 million and $10.3 million were expensed as incurred during the three and nine months ended September 30, 2025, respectively, for the Acquisition. 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.

9

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.