L.B. Foster Company has sold all operating assets of its concrete railroad tie business located in Spokane, Wash., to voestalpine Railway Systems Nortrak, LLC (Nortrak) by its CXT, Incorporated subsidiary.
L.B. Foster 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 $3 million, 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 $9 million for the trailing 12 months that ended June 30.
Impact to 2023 financial guidance
The completed transaction did not have a material impact on the company’s financial guidance for its fiscal year ending Dec. 31. The company expects net sales for 2023 to range between $520 million to $550 million, with adjusted EBITDA expected between $27 million and $31 million.
