Federal Signal Corporation (NYSE:FSS) announced that it has completed the acquisition of Truck Bodies and Equipment International (TBEI), a manufacturer of dump truck bodies and trailers, for a purchase price of $270 million, subject to customary closing adjustments.
TBEI represents a portfolio of six established brands, which occupy leading market share positions in their respective product categories. They have developed a sustained competitive advantage through a combination of an intense focus on operational excellence, a comprehensive distribution strategy, and continuous attention to its customers’ primary requirements for a high-quality product and short lead times.
“We are excited to welcome the TBEI businesses to our Federal Signal portfolio of brands,” said Jennifer L. Sherman, Federal Signal’s President and Chief Executive Officer. “Their product offerings will allow us to further diversify into higher growth, maintenance and infrastructure markets, while balancing the mix of revenue streams between municipal and industrial, and reduce our exposure to oil and gas. This acquisition represents a strong strategic fit for Federal Signal and will enhance our ability to achieve sustainable and profitable growth. After factoring in a preliminary estimate of the anticipated increase in amortization expense resulting from acquisition-related accounting impacts, we continue to expect TBEI to be modestly accretive to 2017 earnings.”