Federal Signal Corp. (FSS) said it will acquire Truck Bodies and Equipment International (TBEI) for $270 million. TBEI manufactures dump truck bodies and trailers.
FSS said the move will "strengthen its market position as a specialty vehicle manufacturer in maintenance and infrastructure markets."
"This transaction will also allow the Company to leverage its expertise in building chassis-based vehicles, significantly expand its exposure to higher growth industrial end-markets, and balance the mix of revenues it generates from municipal and industrial markets," according to the company's press release.
During the 12-month period ending March 31, 2017, TBEI generated revenues of $206 million. It operates five manufacturing facilities throughout the United States and employs approximately 850 people.
"The TBEI business is a strong strategic fit...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," said Jennifer L. Sherman, President/CEO. "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/CEO, Robert Fines, will join 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," he said. '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."
Source: Federal Signal Corp.