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Portec Rail acquires U.K.-based track component supplier Coronet Rail

Today, Portec Rail Products Inc. announced it reached an agreement with Coronet Rail Ltd. to purchase all the United Kingdom-based track component supplier’s outstanding shares for about $5.2 million, subject to a working capital adjustment and two-year earn out provision.

During its fiscal year ending March 31, Coronet Rail — which produces insulated rail joints and track fasteners — registered unaudited net sales of $7.8 million compared with Portec Rail’s consolidated U.K. railway sales of $7.7 million in 2005.

Peter Jones and Gary Elliott, former Coronet Rail shareholders, managers and directors, will join Portec Rail as executives of Coronet Rail, which will become a Portec Rail Products (UK) Ltd. subsidiary.

“We believe that the acquisition of Coronet Rail will enable us to integrate the technology and improve and strengthen the product lines of both organizations,” said Portec Rail President and Chief Executive Officer John Cooper in a prepared statement. “In addition, the combination of our Portec Rail United Kingdom and Kelsan United Kingdom railway friction-management operations, along with the Coronet Rail track component business, will increase our capabilities and overall presence in the United Kingdom and European railway marketplace.”

Portec Rail supplies rail joints, anchors and spikes; railway friction-management products; wayside data collection and data management systems; and load securement systems.

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More News from 4/13/2006