– With the healthy combined cash flow from its legacy businesses and TBEI, the Company expects a rapid reduction in debt levels Upon closing, the Company anticipates a debt to EBITDA ratio of approximately 2.7x – The Company intends to fund the acquisition through a combination of available cash and borrowings available under its existing credit agreement. Supply chain, cross-selling products from both ESG and the Safety and Security Systems Group through the TBEI distribution channel, leveraging our existing parts and distribution business and sharing of manufacturing best practices will drive the synergies – Annual run-rate synergies are anticipated to be between $3-4 million, phased in over three years. – The Company intends to apply its 80/20 principles to TBEI’s operations to further optimize an already strong business – The Company expects the acquisition to be modestly accretive to EPS in 2017, increasing to an annual run rate of between $0.07-$0.12 per share and $0.12-$0.17 per share by the second and third anniversary of the acquisition, respectively – The transaction diversifies the Company’s current end markets through an expanded focus on infrastructure, construction, waste, rendering and other industrial end markets This platform will expand the Company’s leadership position in these markets and will provide a springboard for future organic growth and M&A – TBEI is expected to be combined with the businesses within the Company’s Environmental Solutions Group (“ESG”) to create a single platform providing municipal and industrial customers with a complete suite of maintenance and infrastructure equipment and supporting solutions. The transaction is expected to be immediately accretive to the Company’s margins and earnings per share (“EPS”), excluding transaction costs and before giving effect to anticipated synergies. 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 acquisition will enable the Company to strengthen its market position as a specialty vehicle manufacturer in maintenance and infrastructure markets. This represents a multiple of 7.2x TBEI’s EBITDA for the twelve-month period ending March 31, 2017, before accounting for synergies. manufacturer of dump truck bodies and trailers, for $270 million, subject to post-closing adjustments. Reiff.OAK BROOK, Illinois, May 8, 2017 - Federal Signal Corporation (NYSE:FSS) (“the Company”), a leader in environmental and safety solutions, today announced the signing of a definitive agreement to acquire Truck Bodies and Equipment International (“TBEI”), a leading U.S. Wilson, with additional contributions from Stephen R. By the end of the 1990s, when Federal Signal was a leading manufacturer of emergency vehicles and street sweepers as well as signs and sirens, the company approached $1 billion in annual sales and employed about 1,500 people in the Chicago area.ĭictionary of Leading Chicago Businesses (1820-2000) in 1975, the company's general offices were moved to suburban Oak Brook. After changing its name to the Federal Signal Corp. By the middle of the 1960s, the company-a leader in the field of electric signs-was doing about $30 million in annual sales and had about 1,500 employees. In 1958, Federal moved its main plant from 87th and State Streets on Chicago's South Side to Blue Island, the suburb a few miles to the southwest. After spending a few years under the control of Chicago utilities titan Samuel Insull, the company became independent again in the 1930s, when it became the Federal Sign & Signal Corp. In 1915, the company started making sirens. The Federal Electric Co., a manufacturer of electric signs, was incorporated in Illinois in 1901 by John Goehst and brothers John and James Gilchrist.
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