PITTSBURGH, Sept. 27, 2021 (GLOBE NEWSWIRE) — L.B. Foster Company (NASDAQ: FSTR, the Company), a leading provider of products and services for the rail industry and solutions to support critical infrastructure projects, announced today that it completed the sale of its steel Piling Products line of business to J.D. Fields & Company, Inc. on September 24, 2021 for approximately $24 million in total proceeds. The Company is retaining all pre-closing receivables and liabilities associated with the business. The asset sale includes all inventory held by the Company associated with the line of business, as well as the related fixed assets, including its Petersburg, VA facility.
John Kasel, President and Chief Executive Officer, commented on the divestiture, “We are pleased with the results of the transaction, which will help us improve shareholder value by allocating capital to businesses with better growth and profitability outlooks. Our Piling Products business model was working capital intensive and presented constraints on our ability to increase profit margins. We are confident that we can redeploy this capital in a way that will achieve better returns and further strengthen businesses in our portfolio that have more robust growth opportunities.”
Mr. Kasel further stated, “The Company has begun narrowing its investment focus in the more profitable areas of Rail Technologies and Precast Concrete Products. 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 Piling Products division produced revenues of approximately $43 million for the six months ended June 30, 2021, and $59 million for the twelve months ended December 31, 2020.
About L.B. Foster Company
L.B. Foster Company and its subsidiaries provide products and services for the rail industry and solutions to support critical infrastructure projects. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance of its customers’ challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com.
