Burlington-based RexCon LLC has been sold for $26 million by Jake Jacobs and Mike Redmond to Chattanooga, Tennessee-based industrial conglomerate Astec Industries Inc.
RexCon is a leading manufacturer of stationary and portable central mix and ready mix concrete batch plants, concrete mixers and concrete paving equipment. The company engineers and designs custom production systems, complete with batch plants, mixers, water heaters and chillers, ice production and delivery systems, material handling conveyors, gensets and power distribution, cement silos and screws, central dust collection, aggregate heating and cooling systems, batch automation controls and batch office trailers.
Astec completed the purchase using cash on hand. RexCon will continue to operate as a subsidiary of Astec in the same location, with the same approximately 70 employees, and will be integrated into Astec’s energy group, said Stephen Anderson, vice president of administration at Astec. The company also owns Telsmith in Mequon, which is part of the aggregate and mining group, and Dillman in Prairie du Chien, which is part of the infrastructure group, but it does not plan to combine their operations, he said.
Since Astec is a world leader in asphalt plant production equipment, the acquisition of RexCon allows for "excellent cross-selling opportunity," Anderson said.
“We are very pleased to welcome RexCon to the Astec Industries family of companies. The acquisition of RexCon reflects our stated strategy to drive focused growth, both organically and through acquisitions of strong companies that serve the infrastructure, aggregate and mining, and energy industries,” said Benjamin Brock, chief executive officer of Astec Industries.“RexCon is a successful, profitable company with a reputation for innovative technology and dependable, quality products. We are a match culturally and in our approach to business. We thank the owners, Jake Jacobs and Mike Redmond, for their collaborative efforts in finalizing this transaction, and we are pleased that they will continue to run and work to grow RexCon as a part of Astec Industries, joining our energy group.”
Astec acquired the RexCon facility and 26-acre property at 2841 Whiting Road from Erin Commercial Properties LLC on Oct. 6 for $5.3 million, according to state real estate records. Anderson said the purchase was part of the overall acquisition price.