Federal Signal To Buy Canada-based Westech Vac Systems - Quick Facts

(RTTNews) - Federal Signal Corp. (FSS) said it has agreed to acquire Westech Vac Systems, Ltd., a Canadian manufacturer of high-quality, rugged vacuum trucks. Financial terms of the deal were not disclosed, but Federal Signal noted that the acquisition is not significant in size.

Federal Signal will acquire 100 percent 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 or DOT standards.

Federal Signal expects the acquisition to contribute revenues of about C$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.