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Astec (ASTE) to Buy MINDS Automation, Expand Asphalt Production

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Astec Industries, Inc. ASTE recently entered into an agreement to acquire MINDS Automation Group Inc. (MINDS). The acquisition will enable ASTE to expand its asphalt production offerings.

Based in British Columbia, Canada, MINDS is a leader in plant automation control systems and cloud-based data management in the asphalt industry with operations in the United States, the U.K., France and Belgium.

The acquisition strengthens ASTE’s digital platform across its Rock-to-Road value chain through Astec Controls and Grathwol Automation. Also, the buyout supports the company’s Purpose – Built to Connect, OneASTEC business model and growth strategy. Its strong balance sheet provides support to complete the acquisition. The company is also investing in long-term profitable growth.

Astec is focused on innovation, global expansion and strategic acquisitions. In 2020, Astec acquired two premier full-line concrete batch plant manufacturers — CON-E-CO and BMH. The buyouts continue to strengthen the Infrastructure Solutions group portfolio and provide customers with access to the most robust line of concrete products in the infrastructure industry. Last year, the company acquired certain assets of Grathwol Automation, LLC, which is engaged in the business of developing and providing advanced telematics and remote diagnostics for construction equipment and related products and services. Grathwol Automation has been partnering with Astec for a decade.

Astec will continue to gain traction from OneASTEC business model as it is designed to set strategic direction, define priorities and improve overall operating performance. Astec expects to leverage technology and digital connectivity to enhance customer experience through controls and automation as well as other technologies.

Astec is a leading global manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. The Infrastructure Solutions segment offers road building, asphalt and concrete plants as well as thermal and storage solutions. With the U.S Infrastructure Bill signed into law, the increased infrastructure spending represents a huge opportunity for the company. This program includes $548-billion funding for new infrastructure over the five-year period ending in 2026, primarily focused on investments in highway and bridge projects. The company continues to expect Federal Highway Bill will provide a long-term tailwind for its business.

Price Performance

Astec’s shares have declined 22.1% in the past six months against the industry's growth of 9.4%.

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Zacks Investment Research


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Zacks Rank & Stocks to Consider

Astec currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Industrial Products sector include Applied Industrial Technologies, Inc. AIT, AGCO Corporation AGCO and Silgan Holdings Inc. SLGN, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2021), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.

Applied Industrial Technologies has an expected earnings growth rate of 24.3% for fiscal 2022. The Zacks Consensus Estimate for fiscal-year earnings has moved up 8.8% in the past 60 days. AIT’s shares have gained 8.6% in the past six months.

AGCO Corp's fourth-quarter 2021 adjusted EPS increased 100% year over year to $3.08, beating the Zacks Consensus Estimate of $1.72. AGCO has a trailing four-quarter earnings surprise of 56.6%, on average. In the past six months, the company’s shares have gained 12.2%.

AGCO Corp has an estimated earnings growth rate of around 12.1% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 10.8%.

Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.

Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3.2% in the past 60 days. SLGN has moved up 16.2% in the past six months.


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Astec Industries, Inc. (ASTE) : Free Stock Analysis Report

Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report

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