B.H.I.T., Inc. Acquires Railroad Tie Reclamation/Energy Generation Company The Wood Energy Group.BOCA RATON, Fla. -- B.H.I.T., Inc. [OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BHIT], a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. headquartered in Boca Raton, Florida Boca Raton ("bōkə rə-tōn") is a city in Palm Beach County, Florida incorporated in May 1925. As of the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. , 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 Union Pacific Railroad, transportation company chartered (1862) by Congress to build part of the nation's first transcontinental railroad line. Under terms of the Pacific Railroads Act, the Union Pacific was authorized to build a line westward from Omaha, Nebr. (NYSE NYSE See: New York Stock Exchange : UNP) and Canadian National Railway Canadian National Railway, rail system in Canada and the United States, extending from coast to coast in Canada with many branch lines in each province and in the United States. (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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 entree 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 Raton, Florida. |
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