Lexington, Kentucky, February 6, 2026
Komatsu Ltd. has announced its plans to acquire the remanufacturing business assets of SRC of Lexington, Inc., enhancing its capabilities in North America. The acquisition, expected to close by February 2026, aims to address the growing demand for remanufactured components in construction and mining sectors. SRC of Lexington, recognized for its high-quality remanufactured parts, will strengthen Komatsu’s existing network and commitment to sustainability and resource efficiency.
Komatsu to Acquire Remanufacturing Business of SRC of Lexington, Inc.
Lexington, Kentucky – In a notable development for the local economy, Komatsu Ltd. has announced plans to acquire the remanufacturing business assets of SRC of Lexington, Inc., a prominent supplier of remanufactured components and parts for construction and mining equipment. The acquisition is expected to close by the end of February 2026, contingent on the fulfillment of customary closing conditions. This strategic move is designed to bolster Komatsu’s remanufacturing capabilities in North America while expanding its global supply capacity to meet increasing customer demand. Notably, the financial impact of this acquisition on Komatsu’s consolidated business results is anticipated to be minimal.
Details of the Acquisition
Komatsu America Corp., which is a wholly owned subsidiary of Komatsu Ltd., has entered into a formal agreement to take over the remanufacturing business assets of SRC of Lexington, Inc. Located in Lexington, this established firm specializes in remanufacturing heavy equipment components, such as engines, transmissions, hydraulic pumps, and motors. The planned acquisition will enhance Komatsu’s existing remanufacturing network in North America and better position the company to support growing customer demands for remanufactured solutions.
About SRC of Lexington, Inc.
SRC of Lexington, Inc., founded in 2009, has earned a reputation for excellence in remanufacturing various components and parts vital to construction and mining operations. Operating from its Lexington facility, the company holds ISO certification and employs advanced technologies to ensure high quality and efficiency in its processes. SRC has been a key supplier to Komatsu, helping customers reduce total ownership costs through high-quality remanufactured parts that extend equipment life.
Strategic Significance
The proposed acquisition is aligned with Komatsu’s overarching strategy to enhance its remanufacturing capabilities and respond to the growing demand for remanufactured components in North America. By integrating SRC of Lexington’s operations, Komatsu aims not only to achieve improved supply stability but also to further its commitment to a circular business model emphasizing sustainability and resource efficiency. This expansion allows Komatsu to better serve its customers while significantly strengthening its market presence in North America.
Background on Remanufacturing
Remanufacturing plays a crucial role in modern manufacturing, as it involves recovering used components from construction and mining equipment, restoring them to like-new condition at dedicated facilities, and returning them to the market with the same standards as new components. This practice offers several benefits, including significant cost savings for customers and contributing to environmental sustainability through resource conservation. By 2025, Komatsu will have expanded its global remanufacturing network to 45 locations across 16 countries to address the rising demand for remanufactured products and effectively support its customers throughout the entire equipment lifecycle.
Frequently Asked Questions (FAQ)
What is the purpose of Komatsu’s acquisition of SRC of Lexington, Inc.?
Komatsu Ltd. has announced plans to acquire the remanufacturing business assets of SRC of Lexington, Inc., a leading supplier of remanufactured components and parts for construction and mining equipment. The acquisition is expected to close by the end of February 2026, subject to customary closing conditions. This strategic move aims to strengthen Komatsu’s remanufacturing capabilities in North America and expand its global supply capacity to meet growing customer demand. The financial impact of the acquisition on Komatsu’s consolidated business results is anticipated to be minimal.
When is the acquisition of SRC of Lexington, Inc. expected to close?
The acquisition is expected to close by the end of February 2026, subject to customary closing conditions.
What is the significance of this acquisition for Komatsu?
This acquisition aligns with Komatsu’s strategy to enhance its remanufacturing capabilities and support the growing demand for remanufactured components in North America. By integrating SRC of Lexington’s operations, Komatsu aims to improve supply stability and continue expanding its circular business model, which focuses on sustainability and resource efficiency. The addition of SRC of Lexington’s facility will enable Komatsu to better serve its customers and strengthen its presence in the North American market.
What does remanufacturing involve?
Remanufacturing involves recovering used components from construction and mining equipment, restoring them to like-new condition at dedicated facilities, and returning them to the market with the same standards as new components. This process offers several benefits, including cost savings for customers and environmental sustainability through resource conservation. Komatsu has been expanding its remanufacturing network globally, with operations in 16 countries as of 2025, to meet the increasing demand for remanufactured products and support its customers throughout the equipment lifecycle.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquiring Company | Komatsu Ltd. |
| Target Company | SRC of Lexington, Inc. |
| Location of Target Company | Lexington, Kentucky |
| Nature of Acquisition | Remanufacturing business assets |
| Expected Closing Date | End of February 2026 |
| Financial Impact | Minimal on Komatsu’s consolidated business results |
| Strategic Objective | Strengthen remanufacturing capabilities in North America and expand global supply capacity |
| Benefits of Remanufacturing | Cost savings for customers and environmental sustainability through resource conservation |
| Komatsu’s Global Remanufacturing Network | 45 locations across 16 countries as of 2025 |
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