L.B. Foster Expands Precast Concrete BusinessWritten by David C. Lester, Engineering Editor and Editor-in-Chief, Railway Track & Structures
L.B. Foster is expanding its precast concrete business. The company’s wholly owned subsidiary, CXT Incorporated, has acquired the operating assets of VanHooseCo Precase, LLC, a privately held business based in Loudon, Tenn.
VanHooseCo specializes in precast concrete walls, water management products and traditional precast products for the industrial, commercial and residential infrastructure markets. VanHooseCo’s approximately 100 employees will be retained by CXT at the existing manufacturing site in Loudon, near Knoxvillle, and a new facility is being commissioned in Lebanon, Tenn., just outside of Nashville.
At the completion of VanHooseCo’s most recent fiscal year, which closed on Dec. 31, 2021, revenues were approximately $28 million, while net income was $1.4 million.
Under the terms of the definitive Asset Purchase Agreement between CXT and VanHooseCo, L.B. Foster paid $50.5 million for the business, subject to holdbacks for customary indemnification and retention obligations and a post-closing working capital adjustment.
L.B. Foster President and Chief Executive Officer John Kasel, said “We are excited to take another important step in our transformation journey by joining VanHooseCo with our market-leading CXT precast concrete business, establishing a robust platform for future investment and growth.”
VanHooseCo Owner and CEO Jeff VanHoose and President Don Atkins, both of whom will remain with the business, commented, “Joining forces with L.B. Foster should help us unlock the opportunities we see expanding in our core markets and provides access to capital and resources to help accelerate our growth. Our business has been growing since the beginning of the year, and joining the L.B. Foster family is well-timed as we bring our Lebanon facility on line and look to further expand our market reach. Since 1998, our team has built a strong business here in Tennessee, and we will benefit from being part of a well-respected company with 120 years of excellence.”