Ditch Witch will purchase American Augers from Astec Industries for about $55 million. Included in the sale are “certain assets” of the Trencor large-trencher line. The sale does not include American Augers vertical oil and gas drilling rig line, or its four-track surface miner line.
According to Astec, total revenues of the sold business unit and product line were $42 million for the nine months ended September 30, 2012.
“We acquired the Trencor operation in 1988 and American Augers in 1999,” said J. Don Brock, chairman/CEO. “These businesses have been very cyclical through the years. Our strategy has been to buy and grow companies; however, we sold our utility trencher and drill line to Toro earlier this year, and the opportunity became available to sell American Augers and the Trencor line of large trenchers at Astec Underground.
“At Astec Underground in Loudon, Tenn., we plan to continue to grow our pump trailer business and develop more equipment related to the fracking industry, as well as expand our surface miner product line,” Brock said. “These products are a part of our strategy to grow in the energy and mining industries.”