L.B. Foster sells concrete rail tie operations

L.B. Foster’s CXT subsidiary has completed the sale of substantially all the operating assets of its prestressed concrete railroad tie business located in Spokane, WA to voestalpine Railway Systems Nortrak. The company is retaining all pre-closing accounts receivable and liabilities associated with the business, while the asset sale to Nortrak includes all owned inventory associated with the line of business, as well as the related fixed assets. Total cash proceeds from the transaction are expected to be approximately $3M, subject to customary working capital adjustments. Revenues from the divested business, which was part of the company’s Rail, Technologies, and Services segment, totaled approximately $9M for the trailing-twelve-months ended June 30. The completed transaction did not have a material impact on the company’s financial guidance for its fiscal year 2023. The company expects net sales for 2023 to range between $520M-$550M, with adjusted EBITDA expected between $27M-$31M.