LB Foster Announces Track Components Business
PITTSBURGH, Aug. 05, 2022 (GLOBE NEWSWIRE) — LB Foster Company (Nasdaq: FSTR “Company”), a global provider of product and service solutions for the rail and infrastructure markets, today announced the sale of its rail spikes and anchors a track components company located in St-Jean-sur-Richelieu, Quebec, Canada (the “Company”) to Gerdau Ameristeel Corporation located in Whitby, Ontario, Canada (“Gerdau”). Cash proceeds from the transaction are expected to total approximately CAD 10.2 million (or USD 7.8 million), subject to customary indemnification obligations and working capital adjustment. Revenue from the divested business totaled approximately US$14 million for the last twelve months ended June 30, 2022.
John Kasel, President and CEO of the company, said, “The sale of the track components business represents another achievement in our strategic transformation journey. We are pleased with the outcome of the process and confident that the business will be operated by a highly respected player in the industry. Proceeds from the sale will be used to repay our revolving credit facility and further enable us to implement our growth strategy initiatives. »
About LB Foster
Founded in 1902, LB Foster Company is a global provider of engineered and manufactured product and service solutions that builds and supports infrastructure. The company’s innovative engineering and product development solutions meet the safety, reliability and performance needs of its customers’ most demanding requirements. The company has locations in North America, South America, Europe and Asia. For more information, please visit www.lbfoster.com.
This release may contain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements provide management’s current expectations regarding future events based on certain assumptions and include any statement that is not directly related to historical or current fact. Sentences containing words such as “believe”, “intend”, “plan”, “may”, “expect”, “should”, “could”, “anticipate”, “estimate”, ” predict”, “project” or their negatives, or other similar expressions of a future or forward-looking nature should generally be considered forward-looking statements. The forward-looking statements in this press release are based on management’s current expectations and assumptions regarding future events that involve inherent risks and uncertainties and may relate to, among other things, the Company’s expectations regarding our strategy, our objectives, projections and plans regarding our financial condition. position, liquidity, capital resources and results of operations and decisions regarding our strategic growth initiatives, market position and product development. Although the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. The Company cautions readers that a variety of factors could cause the Company’s actual results to differ materially from those indicated by the forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Among the factors that could cause actual results to differ materially from those set forth in the forward-looking statements include risks and uncertainties relating to: the COVID-19 pandemic and any future global health crisis, as well as the social, regulatory and related economics. the impacts and the response thereto by the Company, our employees, our customers and national, state or local governments; volatility in oil and natural gas prices and the related impact on intermediate energy markets, which could result in cost mitigation measures, including shutdowns or holiday periods; a continuation or worsening of adverse economic conditions in the markets we serve, including a possible recession in the markets we serve, whether due to the current COVID-19 pandemic, including its impact on the markets of the labor, supply chain and other inflationary costs, travel and demand for oil and gas, continued deterioration in oil and gas prices, government travel restrictions, project delays and budget shortfalls , or others ; volatility in global financial markets, including interest rate fluctuations, which could adversely affect our ability to access capital markets on terms favorable to us; restrictions on our ability to draw on our credit agreement, including due to any future failure to comply with the covenants contained therein; a continued decline in rail freight or transit traffic, in particular due to the ongoing COVID-19 pandemic; environmental matters, including all costs associated with any remediation and monitoring of such matters; the risk of doing business in international markets, including compliance with anti-corruption and bribery laws, foreign currency fluctuations and inflation, and trade restrictions or embargoes; our ability to execute our strategy, including cost reduction initiatives, and our ability to effectively integrate or divest acquired businesses, such as the recent divestments of the Piling and IOS Test and Inspection Services businesses and the Skratch acquisitions Enterprises Ltd. and Intelligent Video Ltd. and realize the expected benefits; the costs and impacts associated with shareholder activism; continued customer restrictions on the onsite presence of third-party providers due to the COVID-19 pandemic; the timeliness and availability of materials from our key suppliers, including any continuing or worsening supply chain disruptions experienced as a result of the COVID-19 pandemic, as well as the impact on our access to supplies from preferences customers as to the origin of such supplies, such as customer concerns regarding conflict minerals; labor disputes; cybersecurity risks such as data breaches, malware, ransomware, “hacking” and identity theft, which could disrupt our business and result in the misuse or misuse of confidential information or proprietary, and could result in disruption or damage to our systems, increased costs and losses, or an adverse effect on our reputation; the continued effectiveness of our ongoing implementation of an enterprise resource planning system; changes in current accounting estimates and their ultimate results; the adequacy of internal and external sources of funds to meet funding needs, including our ability to negotiate any additional necessary amendments to our credit agreement or the terms of any new credit agreement, and reforms regarding the use of LIBOR as a benchmark for establishing applicable interest rates; the Company’s ability to manage its working capital requirements and indebtedness; domestic and international taxes, including estimates that may affect taxes; domestic and foreign government regulations, including tariffs; economic conditions and regulatory changes caused by the United Kingdom’s exit from the European Union; geopolitical conditions, including the conflict in Ukraine; a lack of state or federal funding for new infrastructure projects; an increase in manufacturing or material costs; loss of future revenue from current customers; and risks inherent in litigation and the outcome of litigation and product warranty claims. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those indicated. The material risks and uncertainties that could affect the operations, performance and results of the Company’s business and forward-looking statements include, but are not limited to, those set forth in Section 1A, “Risk Factors”, and elsewhere. in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, or as updated and/or amended by our other current or periodic filings with the Securities and Exchange Commission.
The forward-looking statements contained in this release are made as of the date of this release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except if required by federal securities laws.
LB Foster Company
415 Holiday Parkway
Pittsburgh, PA 15220