Federal Signal’s Environmental Solutions Group acquires a complementary “DOT” product line
Oak Brook, Illinois, December 22, 2015 ‒ 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.
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