Reuel sells division to Balfour
By Steve Herring
Published in News on September 17, 2010 1:46 PM
Last update on: September 19, 2010 12:11 AM
An operation specializing in power systems and components for the mass transit industry that got its start 20 years ago in Mount Olive has become a division of an international engineering and infrastructure company.
Balfour Beatty Rail Inc., an industry-leading rail infrastructure contractor, has acquired Reuel Inc.'s Traction Power Division.
The Reuel division was originally part of the IMPulse NC operation in Mount Olive and two of the original founders of IMPulse are part of the Balfour Beatty operation. Joe Reed, who is based in California, is Transit Division vice president and Tom Young, general manager, will lead the operation locally.
Young, who has been with Balfour Beatty for a year, previously worked at Reuel.
The new division has 31 employees and is expected to do about $6 million in business this year. Young expects that figure to triple or quadruple within five to six years.
"We have to be, the market is there. We almost don't have a choice," he said. "I put the group together for Reuel. When we first started with Reuel Balfour Beatty was a big customer. We build the units that take utility power and convert it to a form the trains can use and the subways and light rails."
Seven people from the original IMPulse NC team from 1990 are working together for the new Balfour Beatty division. A number had worked at Reuel that had operated the division for about three years.
Balfour Beatty is one of only three companies in the U.S. that makes the traction power equipment.
The division has ongoing jobs in Denver, Los Angeles, Sacramento and Minneapolis.
The division at IMPulse, Reuel and now Balfour Beatty have built all but two of the stations that went into New York transit between 1993 until now.
"The acquisition fulfills an important goal for Balfour Beatty Rail -- to strengthen our transit capabilities and become a one-stop provider of rail services, whether it is track, communications, signals, power or even civil construction," Reed said in a press release. "Adding traction power to our in-house portfolio of services will help us meet the growing demand for mass transit construction opportunities around the U.S. and will add value to existing and future contracts."
Headquartered in Atlanta, Balfour Beatty Rail is part of Balfour Beatty plc, a global engineering, construction, services and investment business organization specializing in large infrastructure and building programs.