Federal Signal Corp (NYSE: FSS) has agreed to acquire Westech Vac Systems Ltd, a manufacturer of high-quality, rugged vacuum trucks based in Nisku, Alberta. No financial terms were disclosed for the all-cash deal, which is expected to close in January. The seller of Westech is Advance Engineered Products Ltd, a Canadian designer and manufacturer of tank truck and trailer equipment. Advance, which obtained creditor protection earlier this year, was acquired in October by Canadian private equity firm Ironbridge Equity Partners. Ironbridge recently confirmed the investment, noting it was made by Ironbridge Equity Partners II LP, which raised $154 million in 2014.
Federal Signal Corporation Announces Westech Acquisition
Federal Signal’s Environmental Solutions Group acquires a complementary “DOT” product line
OAK BROOK, Ill., Dec. 22, 2015 /PRNewswire/ — Federal Signal Corporation (NYSE: FSS), a leader in environmental and safety solutions, today announced that it has signed a definitive agreement to purchase Westech Vac Systems, Ltd. (“Westech”), a Canadian manufacturer of high-quality, rugged vacuum trucks. Federal Signal will acquire 100% of the stock of Westech from Advance Engineered Products Ltd., which was acquired out of bankruptcy during 2015. The transaction will be funded in cash and is expected to close in January 2016.
Westech products are designed for extreme environmental conditions and are certified to Transport Canada safe-transportation standards, which are comparable to U.S. Department of Transportation (“DOT”) standards.
“Although this acquisition is not significant in size, Westech offers Federal Signal an effective and efficient entry into a new line of DOT product offerings,” said Jennifer L. Sherman, Federal Signal’s incoming Chief Executive Officer. “We have been impressed with the quality of Westech’s people, products and potential. We expect it to be the first in a series of acquisitions, and it fits our strategy of acquiring capabilities that our core businesses can build upon.”
“This transaction provides technology and know-how that we can leverage in both the Canadian and U.S. markets, and Westech’s strong brand will complement our existing industry-leading Vactor and Guzzler brands,” added Samuel E. Miceli, senior vice president of Federal Signal’s Environmental Solutions Group. “Westech’s commitment to quality products that have lasting value, and its focus on responsive post-sales service, fit our culture and our strategies. We want to welcome the Westech team to Federal Signal.”
Federal Signal expects the acquisition to contribute revenues of approximately CAD$10 million in 2016 and to be accretive by 2017. After closing of the transaction, Westech will continue to operate in Nisku, Alberta, Canada as part of Federal Signal’s Environmental Solutions Group. For more information about Westech, visit: http://www.westechvac.com.
About Federal Signal
Federal Signal Corporation (NYSE: FSS) provides products and services to protect people and our planet. Founded in 1901, Federal Signal is a leading global designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and commercial customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates three groups: Environmental Solutions, Safety and Security Systems and Fire Rescue. For more information on Federal Signal, visit: http://www.federalsignal.com.
Federal Signal’s Environmental Solutions Group is a leading provider of a full range of Elgin street sweepers; Guzzler industrial vacuum trucks; Jetstream high-performance waterblasting equipment; and Vactor sewer cleaners and vacuum excavators for commercial, municipal and industrial customers. The Environmental Solutions Group also includes FS Solutions, which offers unsurpassed expertise and a unique breadth of environmental cleaning equipment, parts, rental, service and training.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
This release contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this release that are not historical are forward-looking statements. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic conditions in various regions; product and price competition; supplier and raw material prices; foreign currency exchange rate changes; interest rate changes; increased legal expenses and litigation results; legal and regulatory developments and other risks and uncertainties described in filings with the Securities and Exchange Commission.
Photo courtesy of Westech Vac Systems Ltd