Monday, May 14, 2012

L.B. Foster selling securement unit

Written by  Luther S. Miller, Senior Consulting Editor

L.B. Foster Co., an infrastructure products supplier, announced Monday that the will sell its railway securement business in a transaction scheduled for completion at mid-year.

The company toted that it acquired the shipping systems division as part of its acquisition of Portec Rail Products, Inc. in December 2010. It's selling the unit because it believes that "other industry participants would be a better strategic fit and, therefore, provide better growth potential for the business and its employees."

The shipping systems business employs 35 people at facilities in Chicago and in Kenova, W. Va. The unit manufactures chain, cable, and strap tie down systems for vehicle and load securement in rail freight applications.

L.B. Foster intends to release details of the sale upon completion of the transaction.