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12/1/2004



Rail News: M&A

Portec Rail completes Kelsan merger



Today, Portec Rail Products Inc. announced it completed its merger with Kelsan Technologies Corp. Portec Rail acquired all of Kelsan's outstanding shares for about $14.8 million, a deal financed through a seven-year term loan with a Canadian financial institution.

The acquisition expands Portec Rail's friction management portfolio and enables the supplier to use Kelsan's Canadian tax loss "carryforwards" and other tax deductions.

Kelsan markets friction-control products to the railroad industry. Portec Rail supplies rail joints and anchors, spikes, friction-management products and systems, and load securement devices.

"The combination gives us the ability to optimize the use of our engineering, research and development, and global sales and marketing resources," said Portec Rail President and Chief Executive Officer John Cooper in a prepared statement. "Our goal is to be a solutions provider and enable our railway customers to significantly reduce their cost by extending the life of the track structure and rolling stock, reducing fuel consumption and improving noise abatement."


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