Astec Finalizes Purchase of Dillman Equipment Stock

Fri April 10, 2009 - Northeast Edition
CEG




Astec Industries Inc. has finalized the purchase of 100 percent of the stock ownership of Dillman Equipment Inc. Upon the finalization, Dillman was made a division of the Astec Inc. subsidiary of Astec Industries Inc.

Ben Brock, president of Astec, said, “We are excited to finalize our acquisition of Dillman and welcome the successful Dillman team to Astec. We look forward to growing our companies together. To that end, Astec and Dillman management have worked together on an integration plan over the last few months and we have already implemented the plan in full.”

Integration Plan

The Astec and Dillman integration plan is primarily a sales and marketing integration plan. In the past, Dillman has sold equipment only in the United States and Canada through a combined, yet limited network of direct sales representatives, dealers and/or agents. Astec and Dillman management have agreed that the Astec direct sales staff will handle all sales for both companies effective immediately both in North America and worldwide. The full line of Dillman equipment will be offered for sale indefinitely.

Additionally, Astec’s direct sales force for parts will be selling Dillman parts across North America. Previously, Dillman has had no dedicated, full-time parts representatives on the road.

“After talking with Brian Dillman and others within the Dillman organization, we all agreed that Dillman had seen good growth over the last few years. We want to see continued growth as we move toward more direct sales of Dillman equipment. By having Astec sell the complete Dillman line direct in North America through a new territory arrangement that includes existing sales representatives from Dillman and Astec, and by having Astec’s extensive international sales network selling Dillman equipment globally, we feel that our chances for positive growth will be strong,” said Brock.

“We are happy to have this portion of our growth plan complete. Dillman has joined Astec as a complete company, and it was our goal to retain everyone at Dillman. Integration is now complete, and we have been able to integrate 99 percent of the Dillman employees into Astec. We also have maintained every department at Dillman with the exception of outside sales. The Dillman outside sales department has been brought into the Astec outside sales organization. Dillman’s inside sales group remains in place to help the outside sales group at Astec quote Dillman equipment. In addition to his duties as an Astec vice president, Brian Dillman also will assist the outside group to sell Dillman equipment.

“At this point, our goal is to focus on providing both our existing and prospective customers with the industry’s most comprehensive lineup of quality products, outstanding service and state-of-the-art technology from both Astec and Dillman as we work to grow and improve our company,” Brock concluded.