US-based specialty vehicle manufacturer, Federal Signal Corporation, has agreed to acquire US tipper manufacturer, Truck Bodies and Equipment International (TBEI), for US$270 million (€247 million).
The acquisition will reportedly enable Federal Signal to strengthen its market position in maintenance and infrastructure markets and allow the company to leverage its expertise in building chassis-based vehicles.
Federal Signal will likely add TBEI to its Environmental Solutions Group (ESG) to create a single touch point for municipal and industrial customers.
“The TBEI business is a strong strategic fit with our ESG businesses and allows us to broaden our focus on maintenance and infrastructure markets. With its large industrial customer base, TBEI will accelerate the achievement of our long-standing objective of balancing the mix of revenue streams between municipal and industrial. This acquisition is consistent with our disciplined capital deployment strategy, which targets the acquisition of high performing businesses that grow and compound our cash flow,” said Jennifer L Sherman, President and Chief Executive Officer.
“TBEI is an outstanding company with clear leadership positions in its end markets, a strong financial profile and a management team that will thrive as part of Federal Signal. This acquisition also represents a significant step towards the attainment of our strategic goal of profitably growing our revenues to over $1 billion.”
TBEI’s President and Chief Executive Officer, Robert Fines, will reportedly be joining Federal Signal’s management team.
“We are excited to join the Federal Signal family and add TBEI’s six established brands to Federal Signal’s portfolio of market-leading businesses,” said Fines.
“There are many similarities between TBEI’s operations and those of Federal Signal and we are confident in our ability to cross-pollinate manufacturing practices, leverage our distribution networks and create a leading platform to serve the needs of our customers.”
TBEI operates five manufacturing facilities throughout the US and employs approximately 850 people, and reportedly generated revenues of US$206 million (€188.6 million) during the year ending March 31, 2017.