Federal Signal Corporation, which specializes in environmental and safety solutions, recently completed the acquisition of the assets and operations of Mark Rite Lines Equipment Company, a US manufacturer of truck-mounted and ride-on, road-marking equipment.
The acquisition includes the operations of HighMark Traffic Services, a wholly owned subsidiary of MRL that provides road-marking services, primarily within the state of Montana. The signing of the purchase agreement previously was announced on May 14.
“We are pleased to complete the acquisition of MRL, which represents a natural and strategic extension of our market position as a specialty vehicle manufacturer serving maintenance and infrastructure markets,” said Jennifer L Sherman, Federal Signal’s president and chief executive officer.
The transaction involves initial consideration of $55.5 million, subject to post-closing adjustments, Federal Signal said. In addition, there is a contingent earn-out payment of up to $15.5 million.
MRL, headquartered in Billings MT, employs approximately 250 people. The company generated $67 million in revenue in 2018, with an EBITDA margin of 13%, Federal signal said.
“With a clear leadership position in its markets, MRL is well-positioned to capitalize on a number of tailwinds expected to drive growth in the road-marking industry,” Sherman said. “MRL gives us an opportunity to leverage our expertise in building chassis-based vehicles, apply our ETI principles and utilize our existing distribution channels and aftermarket platform to accelerate the next phase of MRL’s growth.
“We continue to expect the acquisition to be modestly accretive to the company’s non-GAAP adjusted earnings per share in 2019.”