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B.H.I.T., Inc., acquires The Wood Energy Group

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B.H.I.T., Inc., a publicly traded railroad support services company headquartered in Boca Raton, Fla., has acquired 100 percent of the equity securities of The Wood Energy Group, Inc. for $6.4 million, plus customary closing adjustments.

Wood Energy, headquartered
in St. Louis, Mo., is one of the nation’s largest railroad tie
reclamation/energy generation companies. Founded in 2001, the company reclaims
railroad ties for Class 1, regional and short line railroads and then disposes
of the ties to either the energy co-generation or landscape markets. In
addition, the company processes wood products for forest products companies for
additional sources of biomass fuel.

Wood Energy has principal
contracts with Union Pacific and Canadian National, as well as contracts with International
Paper, Mead Westvaco) and others. The company currently serves customers
located in the southwest and southeast U.S., and has future plans to expand its
service area. In 2008, Wood Energy reclaimed approximately 900,000 railroad
ties and generated revenues of more than $5.2 million.

Wood Energy, managed by
Greg Smith, president, and Andy Lewis, vice president, currently has 25
full-time employees. Smith has been in the railroad tie reclamation business
since 1991, and has developed a patented design for the disposal of used ties.
Future plans call for the company to invest in additional tie grinding
equipment in order to further meet the needs of the co-generation market.
Shredded railroad ties are a viable "green" source of biomass fuel for industrial
plants and utilities.

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