Dillman acquisition will grow Astec capacity
By Chris Sleight08 August 2008
Astec Inc. has agreed to acquire asphalt plant equipment manufacturer Dillman Equipment for an undisclosed sum. The company said the acquisition would add manufacturing capacity as well as help its market share in the Northern part of the US.
Dillman's portfolio includes asphalt storage silos, its DuoDrum counterflow plants, cold feed systems, recycling systems, conveyors, portable asphalt plants and control systems among others. According to Astec, Dillman's location in Prairie du Chien, Wisconsin will give it a strategic location in a region of the US where it has traditionally had a low market share. Astec's existing manufacturing facility is in Chattanooga, Tennessee.
Ben Brock, president of Astec Inc, whose parent company is Astec Industries, said, "This is a great move for both companies. As we looked ahead we felt like our international business would only increase over the life of our division. Given the growth potential, we were considering two options - build more factory space at our Chattanooga location or buy more factory space.
"We were fortunate to be able to partner with Dillman. It is a good fit and we will work to grow all of our facilities long term. As our international growth continues and we work to grow our market share in North America we now have the manufacturing capacity we need for both markets for the next five to ten years."