Diversified manufacturer Federal Signal Corp. announced that it has completed the acquisition of Truck Bodies and Equipment International, a leading U.S. manufacturer of dump truck bodies and trailers for Classes 3-8 vehicles. The purchase price of $270 million is subject to customary closing adjustments, according to Federal Signal.
The signing of the purchase agreement was previously announced on May 8, the Oak Brook, Ill.-based company said.
“We are excited to welcome the TBEI businesses to our Federal Signal portfolio of brands,” Jennifer Sherman, Federal Signal's CEO, said in a statement. “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.”
The company expects TBEI to be modestly accretive to 2017 earnings, “after factoring in a preliminary estimate of the anticipated increase in amortization expense resulting from acquisition-related accounting impacts,” Sherman said.
Founded in 1901, Federal Signal said it is a global designer, manufacturer and supplier of products that serve municipal, governmental, industrial and commercial customers; it operates through two groups: environmental solutions, and safety and security systems.
