Federal Signal Completes Acquisition of TowHaul Corporation

Rhea-AI Summary

Federal Signal Corporation (NYSE: FSS) has finalized its acquisition of TowHaul Corporation for $46.1 million, enhancing its position as a diversified industrial manufacturer. This strategic purchase, announced on September 7, 2022, allows Federal Signal to expand its offering in off-road towing and hauling equipment. The company anticipates the acquisition will be accretive in 2023 and aims to leverage operational improvements for long-term growth. CEO Jennifer L. Sherman emphasized the opportunity for enhanced product range and global market service.

Positive

• Acquisition of TowHaul enhances product offerings in off-road towing and hauling equipment.
• Strategic acquisition expected to be accretive in 2023, indicating potential revenue growth.
• Strengthens position as a diversified industrial manufacturer in maintenance and infrastructure markets.

Negative

• None.

OAK BROOK, Ill., Oct. 3, 2022 /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS) (the "Company"), a leader in environmental and safety solutions, today announced that it has completed the acquisition of substantially all the assets and operations of TowHaul Corporation ("TowHaul"), a leading manufacturer of off-road towing and hauling equipment, for a purchase price of $46.1 million, subject to post-closing adjustments. The signing of the purchase agreement was previously announced on September 7, 2022.

"We are thrilled to complete the TowHaul acquisition, and strengthen our position as an industry-leading, diversified industrial manufacturer of specialized vehicles for maintenance and infrastructure markets," said Jennifer L. Sherman, President and Chief Executive Officer. "The acquisition creates a platform that can serve its global customer base with a broader range of world-class products and solutions and provides opportunity for long-term value creation through operational improvement and organic growth initiatives."

The Company expects the acquisition to be accretive in 2023.

About Federal Signal

Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities where we work and live. Founded in 1901, Federal Signal is a leading global designer, manufacturer and supplier 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 two groups: Environmental Solutions and Safety and Security Systems. For more information on Federal Signal, visit: www.federalsignal.com.

"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: direct and indirect impacts of the coronavirus pandemic and the associated government response, risks and adverse economic effects associated with emerging geopolitical conflicts, product and price competition, supply chain disruptions, work stoppages, availability and pricing of raw materials, cybersecurity risks, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, 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.

View original content:https://www.prnewswire.com/news-releases/federal-signal-completes-acquisition-of-towhaul-corporation-301639220.html

SOURCE Federal Signal Corporation

FAQ

What is the acquisition value of TowHaul Corporation by Federal Signal?

The acquisition value of TowHaul Corporation by Federal Signal is $46.1 million, subject to post-closing adjustments.

When was the acquisition of TowHaul Corporation completed?

The acquisition of TowHaul Corporation was completed on October 3, 2022.

How will the TowHaul acquisition impact Federal Signal's business?

The acquisition is expected to enhance Federal Signal's product range and contribute to long-term growth through operational improvements.

What are Federal Signal's expectations for the TowHaul acquisition in 2023?

Federal Signal anticipates that the TowHaul acquisition will be accretive in 2023.

What does the acquisition of TowHaul signify for Federal Signal's future?

The TowHaul acquisition signifies an expansion in Federal Signal's capabilities and market reach, potentially leading to increased revenue and operational enhancements.