Astec 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.
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, Oklahoma 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.
Dr. J. Don Brock, Chairman and Chief Executive Officer, 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."
Aaron Harmon added, "I am excited about this move. This is a great opportunity, not only for GEFCO and STECO and our employees, but for our customers as well."
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