BLOOMINGTON, Minn. – The Toro Company (NYSE: TTC) has acquired certain utility and underground product assets of Astec Underground, Inc., a wholly-owned subsidiary of Astec Industries, Inc. (NASDAQ: ASTE). Terms of the transaction were not
disclosed.
Through the acquisition, Toro has acquired Astec Underground’s equipment
line of vibratory plows, trenchers and horizontal directional drills for the
underground utilities market. Typically used in the installation, repair and
replacement of utilities with minimal impact on surrounding landscapes or
structures, these products are designed for power distribution,
telecommunications, utility companies, and landscape and irrigation
contractors.
"This acquisition helps further grow Toro’s product presence in the
landscape and ground engaging markets, along with providing access to a new
category close to our core businesses," says Rick Rodier, general manager of
Toro’s Sitework Systems Business. "The underground utilities space
represents a market in which we don’t compete today, but one we believe
provides great opportunity to drive global share growth in these new
categories."
Based in Chattanooga, Tenn., Astec Industries, Inc. is a manufacturer of
specialized equipment for asphalt road building, aggregate processing,
pipeline and utility trenching, and wood processing. The products Toro is
acquiring, which does not include Astec’s Trencor product line, are
manufactured at the Astec Underground facility in Loudon, Tenn.
