Komatsu to Acquire Astec’s Roadtec, Carlson Road Construction Business

Komatsu is entering the paving market with the purchase of Astec’s road construction equipment division, which includes the Roadtec and Carlson brands of road paving and maintenance equipment.

The transaction, valued at $75 million, is expected to close on January 1, subject to customary closing conditions.

The Roadtec Business, based in Chattanooga, Tennessee, offers road construction and resurfacing, including highway-class and commercial-class asphalt pavers, paver screeds, Shuttle Buggy material transfer vehicles and cold planers, as well as related aftermarket parts and rebuild services. The business generates approximately $145 million in annualized revenue, according to Astec.

The lineup will complement Komatsu’s portfolio of dozers, excavators, motor graders, wheel loaders and haul trucks, creating a more comprehensive portfolio of equipment for road construction applications. 

The deal is part of Komatsu’s broader strategy of making investments that complement its core business to help address a broader range of industry needs.

“Komatsu has long recognized the strategic importance of road construction equipment and has considered opportunities to expand in this market for many years," said Takuya Imayoshi, president and CEO of Komatsu Ltd. "North America is one of Komatsu’s key markets, and this acquisition reflects our continued commitment to investing in the region and strengthening our construction equipment business. By combining Roadtec’s and Carlson’s specialized expertise and technologies with Komatsu’s manufacturing, engineering and global capabilities, we aim to create greater value for customers and build a strong foundation for long-term growth, both in North America and in other markets over time.”

Komatsu says it intends to build on the “specialized technologies and know-how” that has made Roadtec and Carlson successful while adding Komatsu’s manufacturing expertise in areas where it can create additional value, such as product quality and performance, to contribute to long-term growth.

With the divestiture, Astec intends to prioritize investment in its core asphalt, aggregates and concrete platforms, as well as growth opportunities in recycling, digital solutions and mining.

Over the last decade, Astec has expanded its portfolio in this area with the following acquisitions:

• 2017: RexCon LLC, a U.S. manufacturer of stationary and portable, central-mix and ready-mix concrete batch plants, concrete mixers, and concrete paving equipment, was acquired for $26 million cash.
• 2020: Concrete Equipment Company, or CON-E-CO, and BMH systems were acquired for $50 million. CON-E-CO manufactures portable and stationary concrete batch plants, mixers, material handling systems and dust control. BMH Systems manufactures concrete batch plants, paste back-fill plants for the mining sector and bagging plants, in addition to designing and building custom batch plants for large infrastructure projects.
• 2025: TerraSource, a manufacturer of crushers, feeders, separators, sizers, liquid and solid separation, dewatering, and waste management solutions, was acquired in 2025 for $230 million. CWMF Corporation, a manufacturer of portable and stationary asphalt plant equipment and parts, was acquired for $67.5 million.

Astec expects to realize about $65 million in total expected cash proceeds and tax benefits from the sale. The proceeds will strengthen Astec's balance sheet and provide additional financial flexibility to invest in its core businesses, as well as pursue strategic acquisitions, the company says.

"The Roadtec Business has been an important part of Astec, and I want to thank our Roadtec employees for their dedication and contributions and our customers for their partnership and loyalty over the years," said Jaco van der Merwe, Astec president and chief executive officer. "We are pleased to have entered into this agreement with Komatsu, a strategic buyer who values the Roadtec brand, technology, engineering expertise and team members. This transaction is consistent with our strategy to sharpen our portfolio focus, drive sustainable margin expansion and allocate capital toward our core businesses and long-term growth opportunities."