L.B. Foster announces track components business divestiture
L.B. Foster Company has sold 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 C$10.2 million (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-twelve-months ended June 30, 2022.
“The sale of the track components business represents another accomplishment along our strategic transformation journey,” said L.B. Foster President and CEO John Kasel. “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.”