B.H.I.T. Inc., a railroad support services company in Boca Raton Fla., has acquired The Wood Energy Group Inc. in St. Louis for $6.4 million.
Wood Energy said it is one of the nation’s largest railroad tie reclamation and energy generation companies. In 2008, it generated more than $5.2 million in revenue. Founded in 2001, the company reclaims railroad ties for railroads and then disposes of the ties to either the energy co-generation or landscape markets. Wood Energy also processes wood products for forest products companies for additional sources of biomass fuel.
Wood Energy President Greg Smith and Vice President Andy Lewis will continue to lead the company and its 25 full-time employees, according to Larry Rutstein, vice president of administration for B.H.I.T. Wood Energy will essentially continue to operate as it has been.
Wood Energy has contracts with Union Pacific Railroad and Canadian National Railway, as well as contracts with International Paper, Mead Westvaco and others.
The company serves customers located in the southwest and southeast U.S., and has plans to expand its service area and invest in additional tie grinding equipment in order to further meet the needs of the co-generation market.Tags: B.H.I.T., railroad ties, Wood Energy