Chattanooga based Astec Industries announced today that it intends to sell its GEFCO, Inc. subsidiary, located in Enid, Oklahoma. GEFCO produces drilling equipment for water wells, geothermal wells, and cathodic protection; high-pressure double pumpers for energy services
“As part of a thorough strategic review of our product portfolio, we determined that divestiture of GEFCO enhances shareholder value and aligns with our vision for the future of Astec Industries,” stated Barry Ruffalo, CEO of Astec Industries, Inc. “We are in the process of finding a buyer for GEFCO’s businesses. The transaction will further our strategy to simplify the organization, strengthen our financial position and release additional capital to deploy toward future growth opportunities. While the transaction is expected to enhance shareholder value, we remain mindful of the approximately 150 GEFCO employees that may be affected by the divestiture.”
Vince Trotta, President of GEFCO stated, “We would like to thank our employees for their dedication over the years and want to provide as much advanced notice as possible. We have enjoyed our relationship with Astec Industries and look forward to the possibility of becoming part of an organization that more broadly participates and invests in the markets we serve. We hope such a buyer would retain our employees for its operations. In the event that is not the case, we will assist with job searches, unemployment registration, and other benefits.”
This is the 5th time in 80 years that the company has been put up for sale.