L.B. Foster Divests Track Components BusinessWritten by David C. Lester, Engineering Editor and Editor-in-Chief, Railway Track & Structures
L.B. Foster, a long-time supplier of rail spikes and anchors for the railroad industry, is selling this line of business, located in Quebec, Canada, to another Canadian company.
L.B. Foster, which describes itself as “a global solutions provider of products and services for the rail and infrastructure markets,” sold its rail spikes and anchors track components business, located in St-Jean-sur-Richelieu, Quebec, to Gerdau Ameristeel Corp. of Whitby, Ontario. Cash proceeds from the transaction are expected to total approximately C$10.2 million (US$7.8 million), subject to customary indemnification obligations and working capital adjustment, the company said. Revenues from the divested business totaled approximately US$14 million for the 12 months ended June 30, 2022.
L.B. Foster President and Chief Executive Officer John Kasel 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.”
L.B. Foster’s spike and anchor business, along with that of other companies, is featured in the July 2022 issue of Railway Track & Structures.