L.B. Foster Co., a Pittsburgh-based company, recently sold its Canadian rail spikes and anchors track components business to Ontario-based Gerdau Ameristeel Corp. for $7.8 million.
“The sale of the track components business represents another accomplishment along our strategic transformation journey,” John Kasel, L.B. Foster president and CEO, said. “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.”
The business is located in St-Jean-sur-Richelieu, Quebec. The deal is subject to customary indemnification obligations and working-capital adjustment.
During the 12 months ending June 30, revenue from the divested business totaled approximately $14 million.
The deal comes days after L.B. Foster purchased two British companies — Skratch Enterprises, a digital system integration company, and Intelligent Video, which offers surveillance, security, and safety solutions.
L.B. Foster was founded in 1902. It is a provider of engineered, manufactured products and services that build and support infrastructure. Its products and services are used to address customer safety, reliability, and performance needs.
The company has locations in North America, Asia, Europe, and South America.