L.B. Foster Company and Portec Rail Products, Inc. Announce Sale of Certain Assets
Koppers, Inc. to Purchase Portec's Rail Joint Business
PITTSBURGH, Dec. 9, 2010 - L.B. Foster Company ("L.B. Foster", Nasdaq: FSTR) and Portec Rail Products, Inc. ("Portec", Nasdaq: PRPX) , announce the signing of an Asset Purchase Agreement ("APA") with Koppers, Inc., a wholly-owned subsidiary of Koppers Holdings Inc. ("Koppers", NYSE: KOP). Koppers will purchase the assets of Portec's rail joint business primarily located at Portec's Huntington, WV Plant. Revenues for this business in 2010 are estimated at approximately $22 million. This transaction is expected to close by year-end.
Consummation of the divestiture is subject to various conditions including final approval by the Department of Justice Antitrust Division ("DOJ"), entering into a consent order by Foster and Portec to be filed and approved by a federal district court judge and Foster's subsidiary notifying the depositary for its tender offer for Portec's shares that it is accepting the tendered shares for payment.
Stan L. Hasselbusch, President and CEO of L.B. Foster stated, "We are very pleased to announce the completion of this critical step in our acquisition of Portec. We have worked diligently with the DOJ to find an acceptable solution to their objections to our acquisition. We are also pleased to be able to sell these assets to Koppers, another Pittsburgh based supplier to the rail industry."
Mr. Hasselbusch further stated, "We appreciate the tireless efforts of the DOJ to cooperate with L.B. Foster and Koppers to reach completion of this APA, and we look forward to their expedited final approval of the divestiture and their filing of the consent order papers."
Upon judicial approval, the antitrust condition in our tender offer will be satisfied and L.B. Foster will be able to close the tender offer and acquire Portec assuming the other conditions of the tender offer are satisfied.
About Portec Rail Products, Inc.
Established in 1906, Portec serves both domestic and international rail markets by manufacturing, supplying and distributing a broad range of rail products, rail anchors, rail spikes, railway friction management products and systems, rail joints, railway wayside data collection and data management systems and freight car securement systems. Portec also manufactures material handling equipment for industries outside the rail transportation sector through its United Kingdom operation. Portec operates through its four global business segments: Railway Maintenance Products (Salient Systems), Shipping Systems, Portec Rail Nova Scotia Company in Canada (Kelsan friction management, rail anchor and spike products), and Portec Rail Products, Ltd. in the UK (material handling and Coronet Rail products). Portec Rail Products is headquartered in Pittsburgh, PA.
About L.B. Foster Company
L.B. Foster is a leading manufacturer, fabricator and distributor of products and services for the rail, construction, energy and utility markets with approximately 30 locations throughout the United States. The Company was founded in 1902 and is headquartered in Pittsburgh, PA. Please visit our Website: www.lbfoster.com.
SOURCE L.B. Foster Company
CONTACT:David Russo,L.B. Foster Company,+1-412-928-3450,drusso@lbfosterco.com
Web Site: www.lbfoster.com
