B.H.I.T., Inc. Acquires Railroad Tie Reclamation/Energy Generation Company
The Wood Energy Group
BOCA RATON, Fla. -- September 09, 2009
B.H.I.T., Inc. [OTCBB:BHIT], a publicly traded company headquartered in Boca
Raton, Florida, announced today that it has acquired 100% of the equity
securities of The Wood Energy Group, Inc. (“Wood Energy” or “the Company”) for
$6.4 million, plus customary closing adjustments.
Wood Energy, headquartered in St. Louis, Missouri, is one of the nation’s
largest railroad tie reclamation/energy generation companies. Founded in 2001,
the Company reclaims railroad ties for Class I, regional and short line
railroads and then disposes of the ties to either the energy co-generation or
landscape markets. In addition, the Company processes wood products for forest
products companies for additional sources of biomass fuel.
Wood Energy has principal contracts with Union Pacific Railroad (NYSE: UNP)
and Canadian National Railway (NYSE: CN), as well as contracts with
International Paper (NYSE: IP), Mead Westvaco (NYSE: MWV) and others. The
Company currently serves customers located in the southwest and southeast
U.S., and has future plans to expand its service area. In 2008, Wood Energy
reclaimed approximately 900,000 railroad ties and generated revenues of more
than $5.2 million.
Wood Energy, managed by Greg Smith, President, and Andy Lewis, Vice President,
currently has 25 full-time employees. Mr. Smith has been in the railroad tie
reclamation business since 1991, and has developed a patented design for the
disposal of used ties. Future plans call for the Company to invest in
additional tie grinding equipment in order to further meet the needs of the
co-generation market. Shredded railroad ties are a viable “green” source of
biomass fuel for industrial plants and utilities.
Gary O. Marino, Chairman, President & CEO of B.H.I.T., said, “We are pleased
to announce the purchase of Wood Energy, B.H.I.T.’s first acquisition. Wood
Energy is an excellent entrée for B.H.I.T. into the railroad services sector.
The Company has a strong management team, a solid base of business derived
from long-term contracts and the expertise to grow the co-generation segment
of the business. We believe Wood Energy will be the first of a number of
acquisitions for B.H.I.T. as we will continue to seek railroad support
services companies that create economies of scale.”
B.H.I.T., Inc. is a railroad support services company headquartered in Boca
Larry Rutstein, 561 443-5312
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