Astec Industries Inc. (ASTE), a provider of equipment and components for road building, reported the signing of a definite agreement with heavy machinery manufacturer Peterson Inc., pursuant to which Astec would acquire 100% of Peterson for $34 million. The transaction in expected to close in the third calendar quarter, added the company.

Peterson, located at Eugene in Oregon, manufactures whole-tree pulpwood chippers, horizontal grinders and blower trucks. Peterson was originally founded as a heavy construction company and was later expanded into a manufacturer of equipment for land clearing and construction needs. On completion of the transaction, Peterson will continue to be based at Eugene and operate under the name Peterson Pacific Corp.