The two manufacturers of asphalt plant equipment announced their plans to join forces over social media on Thursday, Dec. 4, 2025, with Astec Inc. president and CEO Jaco van der Merwe said on a LinkedIn post:
"Our Infrastructure Solutions (IS) segment is built on a commitment: to deliver innovative, reliable equipment that helps our customers build the roads and structures that connect communities. Today, that commitment grows stronger."
This coincided with another LinkedIn post from the official account for CWMF commenting on the announcement:
"Since 1988, we’ve helped asphalt producers design, build, and optimize plants for peak performance. Now, we’re taking that commitment even further by joining forces with Astec under a definitive agreement. Together, we’ll keep driving innovation, delivering solutions, and supporting customers with the same trusted expertise you’ve come to expect."
According to Tracxn, Over the last five years (2019–2024), Astec Inc. averaged 0.6 acquisitions per year, with one acquisition completed already in April 2025 for TerraSource in a deal reported at $245 million.
From a press release put out by Astec, CWMF is a manufacturer of portable and stationary asphalt plant equipment and parts with annual revenues of approximately $50 million. The distribution of CWMF products is primarily concentrated in the Midwest, South-Central and Great Lakes regions of the United States.
Brian Harris, CFO Astec Inc., added, “We anticipate closing on the CWMF acquisition in the first quarter of 2026. We expect the transaction to be accretive from day one and project our consolidated net leverage ratio to remain within our previously disclosed range of 1.5 to 2.5x net debt/adjusted EBITDA.”
As the deal is expected to close sometime during the first quarter of 2026, it is the presumption of this editor that they intend to finalize the deal before the massive CONEXPO/CON-AGG construction equipment trade show in March.
How this move will impact the industry for asphalt producers remains to be seen, but the number of companies that produce the highly specialized equipment needed to produce and store hot mix asphalt has been shrinking over the last few years. For example, the FAYAT Group purchased North American plant manufacturer Asphalt Drum Mixers.
Stay tuned as we continue to follow the news and post further updates as they become available.
