PITTSBURGH, Jan. 5, 2015 (GLOBE NEWSWIRE) -- Pittsburgh, PA-based L.B. Foster Company (Nasdaq:FSTR) today announced an agreement to acquire Chemtec Energy Services, LLC of Willis, Texas, a major supplier of blending, injection and custody transfer metering skids for critical uses in the oil and gas industry. Chemtec is an ideal acquisition as it expands L.B. Foster's ability to provide engineered solutions for the midstream market where a substantial amount of pipeline infrastructure is still needed.
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"The addition of Chemtec Energy Services to L.B. Foster's expanding energy group offers new markets within our existing customer base and adds exciting growth potential," said Robert Bauer, L.B. Foster President and Chief Executive Officer. Mr. Bauer further noted, "Chemtec is building on 5 years of significant growth as customers continue to recognize their quality products and high level of service."
Chemtec's professional relationships with end users and contractors bring significant opportunities for L.B. Foster to increase turnkey services, strengthen market reach, and expand into midstream and upstream oil and gas operations. The Houston-area company has unique expertise in applying flow technologies for measurement and custody transfer applications. Chemtec's knowledge of regulations and safety requirements are critical to industry operators.
Sales for the company in 2014 will be approximately $50 million. L.B. Foster expects the acquisition to be accretive to earnings in 2015. Chemtec Energy Services will operate as a wholly-owned subsidiary of L.B. Foster Company.
About Chemtec Energy Services
Chemtec has been supplying blending, injection and custody transfer metering skids and services to oil and gas customers since 1999. The company currently maintains a team of approximately 100 employees and a 48,000 SQ FT facility at their headquarters north of Houston. Website: www.chemtecenergy.com
About L.B. Foster Company
L.B. Foster Company is a leading manufacturer, fabricator and distributor of products and services for the rail, construction, energy and utility markets with locations in North America and Europe. Please visit our Website: www.lbfoster.com
This release may contain forward-looking statements that involve risks and uncertainties. Statements that do not relate strictly to historical or current facts are forward-looking. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. Actual results could differ materially from the results anticipated in any forward-looking statement. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company has based these forward-looking statements on current expectations and assumptions about future events. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. The risks and uncertainties that may affect the operations, performance and results of the Company's business and forward-looking statements include, but are not limited to, an economic slowdown in the markets we serve; the risk of doing business in international markets; our ability to effectuate our strategy including evaluating of potential opportunities such as strategic acquisitions, joint ventures, and other initiatives, and our ability to effectively integrate new businesses and realize anticipated benefits; a decrease in freight or passenger rail traffic; a lack of state or federal funding for new infrastructure projects; increased regulation including conflict minerals; an increase in manufacturing or material costs; the ultimate number of concrete ties that will have to be replaced pursuant to the previously disclosed product warranty claim of the Union Pacific Railroad and an overall resolution of the related contract claims; risks inherent in litigation and those matters set forth in Item 8, Footnote 20, "Commitments and Contingent Liabilities" and in Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2013 and reports on Form 10-Q thereafter. The Company urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. The forward-looking statements contained in this press release are made only as of the date hereof, and the Company assumes no obligation and does not intend to update or revise these statements, whether as a result of new information, future events or otherwise, except as required by securities laws.
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CONTACT: L.B. Foster Company Media Contact: Jake Fuellhart, Marketing Communications Manager, Corporate Marketing 412.928.5645 firstname.lastname@example.orgSource:L.B. Foster Company