The Toro Company announced on February 10th that it has acquired certain utility and underground product assets of Astec Underground, Inc., a wholly-owned subsidiary of Astec Industries, Inc. (NASDAQ: ASTE). 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," said 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, Tennessee, 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, Tennessee.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems. With sales of nearly $1.9 billion in fiscal 2011, Toro's global presence extends to more than 90 countries through its reputation of world-class service, innovation and turf expertise. Since 1914, the company has built a tradition of excellence around a number of strong brands to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. More information is available at www.toro.com.
About Astec Industries, Inc.
Astec Industries, Inc. (www.astecindustries.com) is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four primary business segments: asphalt production equipment, mobile asphalt paving equipment, aggregate processing and mining equipment, and underground boring, directional drilling and trenching equipment. Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.