SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 2, 1997
ASTEC INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Tennessee
(State or other jurisdiction of incorporation)
0-14714
(Commission File Number)
62-0873631
(IRS Employer Identification No.)
4101 Jerome Avenue
Chattanooga, Tennessee 37407
(Address of Principal Executive Offices)
(423) 867-4210
(Registrant's telephone number, including area code)
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Item 2. ACQUISITION OR DISPOSITION OF ASSETS
On December 2, 1997, Astec Industries, Inc. ("Astec")
acquired certain assets of the Construction Equipment Division of
Portec, Inc. ("Portec"), a Delaware corporation, for $20,297,650,
paid in cash at closing, subject to certain adjustments which may be
required on the closing balance sheet. In connection with the
consummation of this transaction, First Chicago Bank, Astec's
principal lender, acquired substantially all of the machinery,
equipment, furniture and fixtures of the business and
simultaneously leased such assets to Astec for its use in connection
with the continued operation of the business. The acquired
business, located in Yankton, South Dakota, designs, manufactures
and markets several well-known lines of aggregate processing
equipment, including the Pioneer line of jaw crushers (established
in 1931), the Kolberg line of sand classification equipment and
portable conveyors (established in 1965), and Portec Environmental
products such as screening plants utilized in the recycle and
aggregate markets. The assets acquired and leased will continue to
be used in the design, manufacture and marketing of such product
lines and the new business will continue to be located in Yankton,
South Dakota.
The assets of the Construction Equipment Division of
Portec acquired by Astec consist primarily of a manufacturing
facility, land, inventories and receivables and, together with the
assets leased from First Chicago, constitute substantially all of the
assets used in its manufacturing operation.
The purchase price was determined as a result of arms-
length negotiations between Astec and Portec. Astec used funds
from its existing revolving line of credit with First Chicago Bank to
effect this acquisition.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
ASTEC INDUSTRIES, INC.
/s/ J. Don Brock
Date: December 12, 1997 By:
J. Don Brock President and Chairman of the Board
