Sources: L.B. Foster Co., Pittsburgh; CP staff
CXT Concrete Ties, CXT Concrete Buildings and Carr Concrete owner L.B. Foster has sold its steel Piling Products business assets to J.D. Fields & Co. in a $24 million transaction. The deal includes all inventory associated with the line of business, as well as related fixed assets, topped by a Petersburg, Va. fabrication facility.
“The Company has begun narrowing its investment focus in the more profitable areas of Rail Technologies and Precast Concrete Products,” says L.B. Foster CEO John Kasel. “There is substantial opportunity in these markets to build on the capabilities we have and drive greater scale. As transportation systems evolve and infrastructure demands increase to meet the needs for environmentally-sustainable solutions, these business areas are expected to benefit the most and will receive incremental capital to fuel enterprise growth.”
“The transaction will help us improve shareholder value by allocating capital to businesses with better growth and profitability outlooks,” he adds. “Our Piling Products business model was working-capital intensive and presented constraints on our ability to increase profit margins.”