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Federal Signal to acquire dump truck, trailer manufacturer

By |  May 15, 2017

Federal Signal Corp. signed a definitive agreement to acquire Truck Bodies and Equipment International (TBEI), a U.S. manufacturer of dump truck bodies and trailers, for $270 million.

According to Federal Signal, this acquisition will help strengthen its market position as a specialty vehicle manufacturer in maintenance and infrastructure markets. It will also allow the company to leverage its expertise in building chassis-based vehicles, expand its exposure to higher-growth industrial end-markets and balance the mix of revenues from its markets, Federal Signal adds.

As a part of the transition, TBEI is expected to be combined within Federal Signal’s Environmental Solutions Group (ESG) to create a single platform that provides its customers with a complete suite of maintenance and infrastructure equipment, as well as support solutions. According to Federal Signal, annual run-rate synergies are expected to reach between $3 and $4 million over three years.

“The TBEI business is a strong strategic fit with our ESG businesses and allows us to broaden our focus on maintenance and infrastructure markets,” says Jennifer Sherman, president and CEO of Federal Signal. “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.”

The transaction is expected to close within the next 90 days.

Federal Signal designs, manufactures and supplies products and solutions that serve municipal, governmental, industrial and commercial customers.

Allison Kral

About the Author:

Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.

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