PITTSBURGH — Pittsburgh, PA-based L.B. Foster Company (Nasdaq:FSTR) on Monday announced an agreement to acquire Chemtec Energy Services, LLC of Willis, Texas, a 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.
"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.
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
L.B. Foster Company is a 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
