L.B. Foster subsidiary acquires VanHooseCo Precast

L.B. Foster Co. subsidiary CXT Inc. has acquired the operating assets of VanHooseCo Precast LLC, which specializes in precast concrete walls, water management products and traditional precast products for the industrial, commercial and residential infrastructure markets.

VanHooseCo revenue for the most recent fiscal year completed Dec. 31, 2021, totaled $28 million, with net income of $1.4 million, L.B. Foster officials said in a press release. The company’s nearly 100 employees, based in Loudon, Tennessee, will be retained at the existing manufacturing site near Knoxville. A new facility is being built in Lebanon near Nashville.

CXT manufactures precast concrete ties, restrooms, showers, concessions, storage buildings and other building types.

CXT purchased the company for $50.5 million, and it also entered into a license agreement for the ENVIROCAST® pre-insulated concrete walls and ENVIROKEEPER® water retention and management product lines.

"Our transaction team, led by Bill Treacy, our chief growth officer, identified significant synergies that are expected to make the combined business a force in the growing precast concrete infrastructure market for years to come," said L.B. Foster President and CEO John Kasel in a press release. "Along with our recently announced Rail Technologies acquisitions in the U.K., these investments demonstrate commitment to our strategy to transform L.B. Foster into a technology-focused, high-growth infrastructure solutions provider."

The acquisition expands L.B. Foster’s market reach to include commercial and residential developers and state and local agencies in Tennessee and surrounding states. It also provides a platform for expanding into the precast concrete infrastructure market, company officials said.

As part of the transaction, L.B. Foster amended its credit agreement to obtain approval for the acquisition and temporarily modify some financial covenants to accommodate the purchase.