Sat, May 17 2008
|
|
Published March 06, 2008 08:56 pm - L.B. Foster counting on $151M deal to expand DM&E investor to make millions selling minority stake Sept. 8, 2007 Pittsburg Tribune-Review L.B. Foster Co. said Friday it plans to use acquisitions to build the construction and rail portion of its business -- an ambitious growth plan largely financed by $151.5 million it expects to get from selling its minority interest in the Dakota Minnesota and Eastern Railroad Corp. Leftover cash would be used to pay off about $35 million in debt and possibly repurchase shares. L.B. Foster shares closed yesterday at $40.25, down 86 cents. "The sale provides L.B. Foster tremendous flexibility. There are some solid acquisition targets available to us," said Stan Hasselbusch, president and CEO of L.B. Foster, during a conference call with investors and security analysts yesterday. Green Tree-based L.B. Foster announced Wednesday that Canadian Pacific Railway Ltd., Canada's second-largest railroad, was acquiring the Dakota Minnesota and Eastern Railroad in a deal worth $1.48 billion, not including up to $1 billion in contingent payments. L.B. Foster owned a 12.25 percent interest in the regional railroad it helped found in 1986. The deal is expected to close within 30 to 60 days. On top of the $151.5 million due L.B. Foster when the deal closes, L.B. Foster said it could receive $125.8 million more if Canadian Pacific expands the line and achieves milestones related to Powder River Basin coal tonnage. Hassenbusch said the company has identified eight to 10 acquisition targets, ranging in size from $20 million to $100 million in annual revenue. "We're looking at businesses that will fit, with preference for building the construction and rail side of our business. But we will not overpay for any one company just to get a deal done," he said. L.B. Foster manufactures products for the transportation industry, such as railroad ties, highway railings and steel-grid bridge decking. The company employs about 800 people, including 100 at its headquarters in Green Tree. 
Click here to load this Caspio Bridge DataPage.
Click here to load this Caspio Bridge DataPage.
More from the DM&E news section
DM&E charges secret subterfuge by Rochester |
Print this story
E-mail this story
Post to del.icio.us
 |
 |
 |
||||||||
|
||||||||
 |
Copyright 2008 The Free Press, 418 South Second Street, Mankato, MN 56001 |
Popular Business directory links - Mankato Apartments | Mankato Attorneys | Mankato Auto Dealers | Mankato Auto Parts | Mankato Auto Repair | Mankato Beauty Salons | Mankato Car Rental | Mankato Dentists | Mankato Doctors | Mankato Flowers | Mankato Hotels | Mankato Insurance | Mankato Loans | Mankato Mortgages | Mankato Movers | Mankato Pizza | Mankato Realtors | Mankato Restaurants | Mankato Storage | Mankato Tax Preparation | Mankato Travel | Mankato Featured | More...
|
|
Community Newspaper Holdings, Inc. • CNHI Classified Advertising Network • CNHI News Service 
|