Federal Signal Corporation has announced that it signed a definitive agreement to acquire Truck Bodies and Equipment International (TBEI), a manufacturer of dump truck bodies and trailers.
The acquisition will cost $270 million and is aimed at strengthening Federal Signal’s position as a specialty vehicle manufacturer in the maintenance and infrastructure markets.
The transaction will also allow the company to leverage its experience building chassis-based vehicles and expand its exposure to higher growth industrial markets.
TBEI brands include Travis Trailer & Body Company, Crysteel, Ox Bodies, Rugby Manufacturing, DuraClass, and J-Craft.
TBEI will be combined with the businesses in Federal Signal's Environmental Solutions Group to create a single platform to offer municipal and industrial customers with a suite of maintenance and infrastructure equipment and support.
“The TBEI business is a strong strategic fit with our ESG businesses and allows us to broaden our focus on maintenance and infrastructure markets,” said 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.”
As part of the deal, TBEI’s president and CEO Robert Fines will be joining Federal Signal’s management team. He has over 35 years of industry experience, including management positions held within General Electric and Avery Dennison.
“We are excited to join the Federal Signal family and add TBEI’s six established brands to Federal Signal’s portfolio of market-leading businesses,” said Fines. “There are many similarities between TBEI’s operations and those of Federal Signal and we are confident in our ability to cross-pollinate manufacturing practices.”