Supply Side: L.B. Foster, Genesis Electronics Group

L.B. Foster has announced the sale of substantially all the operating assets of its Chemtec Energy Services, L.L.C. precision measurement products and systems business located in Willis, Tex., to a private buyer.

L.B. Foster announces sale of substantially all the operating assets of its Chemtec Energy Services, L.L.C. precision measurement products and systems business located in Willis, Tex., to a private buyer. Also, Genesis Electronics Group, Inc. (GEGI) signs a letter of intent with Taylor Transport.

L.B. Foster Company, a global technology solutions provider of products and services for the rail and infrastructure markets, on April 3 announced the sale of substantially all the operating assets of its Chemtec Energy Services, L.L.C. precision measurement products and systems business located in Willis, Tex., to a private buyer. Cash proceeds from the transaction, the company says, are expected to total approximately $6.6 million, subject to customary working capital adjustments. Revenues from the divested business totaled approximately $25 million for the trailing-twelve-months, which ended March 31, 2023.

“As highlighted during our year-end earnings call, we remain focused on executing our strategic playbook by deemphasizing our exposure to the energy market while also taking steps to further reduce leverage following last year’s acquisition activity,” said L.B. Foster President and CEO John Kasel. “We had a solid quarter of operating cash generation in the first quarter and this divestiture further reduces net debt and improves our leverage. We’re pleased with the outcome of the transaction process and wish our Chemtec colleagues all the best.”

GEGI, the maker of the autonomous road-to-rail patent-pending shipping technology, Glīd, announced April 3 that it has signed a letter of intent with its first customer, Taylor Transport, a transportation and logistics company headquartered in Vancouver, Wash.

Owned by the Leboki Family, Taylor Transport has been a “foundational business” moving freight and materials around the Washington and Oregon region for the past 25 years. The company’s fleet includes a multitude of trailers, tractors, and commercial equipment utilized as a part of their daily operation to move commodities such as glass, aggregate and sand. For the past several years, the Leboki Family has been “committed to finding and adopting cleaner and greener ways to move freight.” This “quest to try and do their part to reduce their carbon footprint while still providing a pivotal service to the surrounding community” led them to meet with Executives of Genesis Electronics Group and Glīd.

The meeting between the two companies proved to be “serendipitous,” according to GEGI. In addition to having a large fleet of assets ripe for conversion over to Glīd technology, Taylor Transport’s property has a rail spur of sufficient length that connects to a local short-line track where goods and services are shipped. This access, GEGI says, will serve as the proving ground for Glīd to test its beta units by picking up unmodified semi-trailers and moving them from road to rail and off again. This access to private property and rails gives Glīd the ability to autonomously test its vehicles without interfacing with any public roads. The combination of becoming a customer to ship goods with Glīd and having access to rails created a strategic partnership between the companies.

“Mike Leboki is a visionary in his field,” said GEGI and Glīd CEO Kevin Damoa. “His dedication to finding a way to ship goods while trying to do his part to reduce their carbon footprint is commendable. He has built a business out of trust and dedication where the local community, along with customers near and far have trusted him to be their transportation and logistics expert and we are indubitably honored to partner with such an incredible legacy company.”

“This partnership truly marks an incredible milestone for our company,” Damoa added. “Mr. Leboki has become a converted Brand Ambassador for Glīd and is providing his dedication, enthusiasm, and resources to allow Glīd to test and grow to become the revolutionary shipping technology we know it can be. With this partnership, we are confident we can bring Glīd to commercialization faster than we originally anticipated.”

“When I first learned of the Glīd technology I was blown away,” said Taylor Transport President Mike Leboki. “Having shipped goods and materials for the past 25 years, I never conceived that a technology like this would be available in my lifetime, let alone that our company would become its first customer and strategic partner. I am fully providing access to my site, facilities and equipment to help bring this great technology to life. I care about our planet and community and want to become the first company in this region to use this technology to ship goods from road to rail.”

As a Brand Ambassador for Glīd, Leboki is also setting up meetings with local, county and state officials to introduce the importance of Glīd in decarbonizing freight, and source potential grant opportunities.