L.B. Foster Company (NASDAQ: FSTR) subsidiary, CXT Incorporated, has acquired the operating assets of VanHooseCo Precast LLC for $50.5 million.
VanHooseCo Precast is a privately-held business headquartered in Loudon, Tennessee, specializing in precast concrete walls, water management products, and traditional precast products for the industrial, commercial and residential infrastructure markets.
VanHooseCo's most recent fiscal (ended December 31, 2021) revenue totaled ~$28 million, with a net income of $1.4 million and adjusted EBITDA of ~$7.2 million.
The Company also entered into a license agreement for the ENVIROCAST® pre-insulated concrete walls and ENVIROKEEPER® water retention and management product lines.
FSTR held cash and cash equivalent of $7.66 million as of June 30, 2022.
This acquisition expands L.B. Foster's addressable market to include commercial and residential developers and state and local agencies; it also provides a platform for further investment and organic growth in the expanding precast concrete infrastructure market.
L.B. Foster amended its Fourth Amended and Restated Credit Agreement to obtain approval for the VanHooseCo acquisition and temporarily modify certain financial covenants to accommodate the Transaction.
Price Action: FSTR shares closed higher by 0.03% at $15.01 on Friday.
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