Federal Signal Corporation, a leader in environmental and safety solutions, has executed a definitive agreement to acquire Truck Bodies and Equipment International (TBEI), a U.S. manufacturer of dump truck bodies and trailers, for $270 million, subject to post-closing adjustments.
This represents a multiple of 7.2x TBEI’s EBITDA for the 12 month period ending March 31, 2017, before accounting for synergies.
The acquisition will enable the company to 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. The transaction is expected to be immediately accretive to the company’s margins and earnings per share, excluding transaction costs and before giving effect to anticipated synergies.
Published in the June 2017 Edition of American Recycler News
