L.B. Foster, a long-time supplier of rail spikes and anchors for the railroad industry, said it is selling this line of business to another company.
L.B. Foster’s spike and anchor business, along with that of other companies, was recently featured in the July issue of Railway Track & Structures magazine.
Here is the company’s press release on the sale:
“L.B. Foster Company, a global solutions provider of products and services for the rail and infrastructure markets, announced the sale of its rail spikes and anchors track components business located in St-Jean-sur-Richelieu, Quebec, Canada, to Gerdau Ameristeel Corporation located in Whitby, Ontario, Canada. Cash proceeds from the transaction are expected to total approximately CAD 10.2 million (or US $7.8 million), subject to customary indemnification obligations and working capital adjustment. Revenues from the divested business totaled approximately US $14 million for the trailing-12-months ended June 30, 2022.
“John Kasel, the company’s president and Chief Executive Officer, commented, ‘The sale of the track components business represents another accomplishment along our strategic transformation journey. We’re pleased with the outcome of the process and satisfied that the business will be operated by a well-respected industry player. Proceeds from the sale will be used to pay down our revolving credit facility and further enable our ability to execute on our growth playbook initiatives.'”
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