Astec Industries’ recent acquisition of TerraSource provides the company with greater resources to help miners in Australia.
Astec Industries has entered into a definitive agreement to acquire TerraSource Global for $US245 million ($379 million) in a strategic move poised to enhance its materials solutions segment and fuel global growth, including in the Australian mining market.
TerraSource is known for its robust portfolio in crushing, screening, feeding and material handling offerings. The company’s equipment has been crucial for many coal mining operations, trusted by companies such as Arch Coal, Peabody and Drummond.
Its solutions offer power-efficient crushing and high-capacity sizing in challenging mining environments, helping to ensure reliable, low-maintenance operations that enhance productivity and reduce downtime.
With features like uniform feeding, precise material control and efficient material transfer, TerraSource’s equipment significantly contributes to the efficiency and effectiveness of coal mining operations.
Astec president and chief executive officer Jaco van der Merwe said the acquisition aligns with Astec’s long-term vision and customer-centric values.
“I’m proud to share that Astec has entered into a definitive agreement to acquire TerraSource, a strategic partnership that will significantly elevate our aftermarket parts and services platform and unlock new opportunities for global expansion,” van der Merwe said.
“This move directly supports our long-term vision and strengthens our materials solutions segment with innovative equipment, creating powerful synergies through a highly complementary product line-up.
“But this is more than a business decision – it’s a partnership rooted in shared values of innovation and customer focus. A culture that prioritises people and connection.”
The deal will be financed through existing cash on hand and new committed financing, based on 2024 financial figures.
The acquisition is expected to carry an adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) multiple of 5.9, factoring in tax benefits of approximately $US15 million and anticipated annual run-rate synergies of about $US10 million by the end of year two.
The transaction is expected to close early in the third quarter of 2025, pending regulatory approvals and other customary conditions.
Astec chief financial officer Brian Harris said the acquisition aligns with the company’s disciplined growth strategy and will drive value from the outset.
“The pending acquisition of TerraSource is consistent with our disciplined growth strategy,” Harris said. “It will add scale, improve our after-market parts mix, expand our margins and quality of earnings, and is expected to be accretive from day one.”
TerraSource’s equipment is already well-recognised in key industrial markets, and its major brands include Gundlach Crushers, Jeffrey Radar, Pennsylvania Crusher and Elgin Separation Solutions. These brands are particularly valuable in sectors such as mining, energy and aggregates, offering robust, durable machines suited to challenging environments.
TerraSource equipment handles a broad spectrum of raw materials, including coal, iron ore, gold and copper, all central to Australia’s resource economy. This complements Astec’s existing presence in Australia, where it provides a suite of crushing plants, screens, feeders and conveyors.
By integrating TerraSource’s technologies and installed base, Astec can further strengthen its after-market capabilities, reduce equipment downtime, and provide a more seamless supply of replacement parts and support services.
This is particularly relevant in remote mining regions, where equipment reliability and responsive service are mission-critical. The addition of TerraSource’s 15 global locations also adds to Astec’s existing portfolio and gives the company greater capacity to serve customers faster.
“TerraSource adds significant growth and value-creation opportunities, including new markets, after-market parts and accretive margins,” van der Merwe said.
“We look forward to having the hard-working TerraSource employees join the Astec team.”
This feature appeared in the June 2025 issue of Australian Mining.
