Astec Industries Buys Power Flame For $43 Million

Astec Industries, Inc. ASTE revealed that it reached a definitive agreement to acquire most of the assets and some liabilities of Power Flame, Inc. The company indicated that the transaction closing was subject to final due diligence, as well as, customary closing conditions. According to it, the aggregate purchase price for the assets was $43 million, subject to some closing adjustments. The company expects the transaction to close in the third quarter.

Astec said that Power Flame manufactures gas, oil and combination gas/oil burners and combustion control systems designed for commercial, industrial and process applications. The company was established in 1948 and was acquired by Bill and Louisa Wiener in 1979.

Its president and CEO, Benjamin Brock, said, "We are very pleased to welcome Power Flame to the Astec Industries family of companies. Our companies have known each other for over thirty years. We are a match culturally and in our approach to business. Power Flame is a successful, profitable company with strong market share in each industry it serves. Power Flame also leads with innovative technology and dependable quality products."

He continued, "We thank Mr. Bill Wiener and his wife Louisa, the owners of Power Flame for 37 years, for their collaborative effort on this acquisition, and we are happy that Bill will remain with us as President of Power Flame."

Shares of the company advanced 2.85 percent on Thursday.