Federal Signal To Buy Trackless For C$54 Mln In Cash, Shares Down In Pre-Market

(RTTNews) - Federal Signal Corp. (FSS), a safety solutions provider, announced on Thursday that it has signed a deal to buy Trackless Vehicles Limited., a Canadian maker of multi-purpose, municipal sidewalk tractors, for initial cash consideration of C$54 million or around $40 million. FSS expects the acquisition to be accretive in 2023. The transaction, expected to be closed over the next 90 days, includes a contingent earn-out payment of up to C$6 million.

The acquisition includes Work Equipment Limited, a trackless dealer in Southwestern and Northern Ontario.

Jennifer L. Sherman, CEO of FSS, said the deal will help leverage Federal Signal's distribution channel in the U.S. to expand the geographic reach of Trackless products and accelerate the growth trajectory of the business.

Ontario-based Trackless has posted revenue of around C$35 million for the 12-month period to December 31, 2022.

FSS is trading down by 4.84 percent at $50.30 per share in pre-market on the New York Stock Exchange.