CHATTANOOGA , Tenn., June 11 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today announced that it has entered into a definitive agreement to acquire 100% of Peterson, Inc. ("Peterson") located in Eugene, Oregon.

Peterson is a leading manufacturer of whole-tree pulpwood chippers, horizontal grinders and blower trucks. Founded in 1961 as Wilbur Peterson & Sons, a heavy construction company, the company expanded into manufacturing in 1982 to develop equipment to suit their land clearing and construction needs. By 1990 Peterson had developed its first wood recycling machine and since that time continuous development has led to the existing product line. The company will continue to operate from its Eugene headquarters under the name Peterson Pacific Corp. The transaction is expected to close during the third calendar quarter.

The total purchase price for the acquisition is approximately $34 million.Such amount includes $7 million to payoff outstanding Peterson debt and $7million to purchase the real estate currently used by Peterson in a separate transaction, but excludes a $3 million potential earn-out payment.

Dr. J. Don Brock , Chairman and Chief Executive Officer, said, "We are delighted to welcome Peterson Pacific Corp. to the Astec Industries family of companies. The acquisition of Peterson adds a new dimension to the range of products manufactured by Astec Industries, Inc. The processing equipment manufactured by Peterson has numerous components that closely resemble those found on our track-mounted crushers and Roadtec milling machines. We believe that we can enhance the operations of Peterson by improving purchasing practices, reducing outsourced assembly items and by using our best practices. Our Focus Group initiatives are very applicable to Peterson's business. Additionally, the existing leadership team of Neil Peterson , President, and Larry Cumming , Chief Executive Officer will continue to manage the business after the acquisition."

To find out more about Peterson go to www.petersonpacific.com.