Amsted Rail Buys Track Fastener Business from AirBoss
Amsted Rail Buys Track Fastener Business from AirBoss
Jason Sandefur
Canada-based AirBoss of America Corp. sold its railway track fastener business to Amsted Rail Co. for $6 million cash.
AirBoss said the rail-hardware business, located in Kansas City, MO, would continue to operate under the trade name AirBoss Railway Products. The railway products are comprised of elastic fastening systems made with steel spring clips, polymer protective pads and polymer insulators. The steel clip and the polymer product manufacture are outsourced.
During the first nine months of 2008, the railway fastener business accounted for 5% of overall company sales, down from 8% of overall revenue in 2007. AirBoss said the fastener business was “not core to the AirBoss main polymer products businesses.”
“Amsted is a leader in the rail products industry and is in a position to more fully exploit the intellectual property developed,” AirBoss stated.
AirBoss could make more money from the under a further payment clause based on sales performance over the next two year. The company will use sale proceeds to reduce operating debt.
Chicago-based Amsted Rail has manufacturing facilities in China, France, Germany and the Czech Republic, and is headquartered at 200 W. Monroe, Suite 2300, Chicago, IL 60606. Tel: 312 853-5712 Fax 312 525-2751 Web: amstedrail.com
Newmarket, Ontario-based AirBoss of America Corp. develops, manufactures, and sells proprietary rubber-based products to transportation, military and industrial markets, with capacity to supply over 250 million pounds of rubber annually. Web: airbossofamerica.com �2008 FastenerNews.com
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