Federal Signal Corporation, a provider of environmental and safety solutions, announced that it has completed the acquisition of the assets and operations of Mark Rite Lines Equipment Company, Inc. (‘MRL’), a U.S. manufacturer of truck-mounted and ride-on road-marking equipment.
The acquisition includes the operations of HighMark Traffic Services, Inc., a wholly-owned subsidiary of MRL, which provides road-marking services, primarily within the state of Montana. The signing of the purchase agreement was previously announced on May 14, 2019. The transaction involves initial consideration of $55.5 million, subject to post-closing adjustments. In addition, there is a contingent earn-out payment of up to $15.5 million.
Leverage expertize in chassis-Based vehicles
MRL is well-positioned to capitalize on a number of tailwinds expected to drive growth in the road-marking industry"MRL, which is headquartered in Billings, Montana and employs approximately 250 people, generated revenues of $67 million for the year ended December 31, 2018, with an EBITDA margin of 13%.
“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, President and Chief Executive Officer.
“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. MRL gives us an opportunity to leverage our expertize 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.”
