Astec Industries to Acquire Gefco
August 30, 2011Astec Industries, Inc. (Nasdaq: ASTE) announced Aug. 4 that it has entered into a definitive agreement to acquire substantially all of the assets and certain liabilities of the GEFCO and STECO divisions of Blue Tee Corp.
GEFCO (formerly known as George E. Failing Co.) is a leading manufacturer of portable drilling rigs and related equipment for the water well, environmental, groundwater monitoring, construction, mining and shallow oil & gas exploration and production industries. Established in 1931, GEFCO manufactures Failing, SpeedStar and King Oil Tools drilling rigs and equipment.
STECO is a leading manufacturer of transfer and dump trailers for the solid waste, scrap processing, construction and demolition industries. Established in the late 1950s, STECO was a pioneer in the development and production of hydraulic dump trailers.
Astec Industries has formed a new subsidiary, GEFCO Inc., to operate the acquired businesses and will continue to manufacture the George E. Failing, SpeedStar, King Oil Tools and STECO equipment from the current Enid, Okla., headquarters. The transaction is expected to close during the fourth calendar quarter.
The total purchase price for the acquisition is approximately $26 million, but is subject to certain closing adjustments.
Astec Industries chairman and CEO Dr. J. Don Brock said, “We are delighted to welcome GEFCO and STECO to the Astec Industries family of companies. This acquisition adds a new range of products manufactured by Astec Industries, Inc. The gas and oil drilling equipment manufactured by GEFCO has numerous innovations that will enhance the American Augers line of gas and oil drilling equipment and directional drills.
“We believe that we can enhance the current operations by improving purchasing practices, reducing outsourced assembly items and by using our best practices. Additionally, under the leadership of Aaron Harmon, President, we look forward to growing the business, expanding the position in the energy market and providing innovative portable drilling equipment.”