Chattanooga, Tenn.-based Astec Industries last week finalized the previously announced purchase of Peterson Inc. located in Eugene, Ore.

The final purchase price including closing adjustments was $21.1 million with the possibility of additional payments of up to $3 million in total based on Peterson’s 2008 and 2009 financial results. The company also paid off approximately $7 million of outstanding Peterson debt. Under a separate contract, the company agreed to purchase at a future date all of the real estate and improvements used by Peterson for approximately $7 million.

Peterson is a 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 its land clearing and construction needs. The company will continue to operate from its Eugene headquarters under the name Peterson Pacific Corp.

Astec Industries is a manufacturer of specialized equipment for building and restoring the world’s infrastructure. Astec’s manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.