Oak Brook, Illinois, June 3, 2016 ‒ Federal Signal Corporation (NYSE:FSS), a leader in environmental and safety solutions, today announced that it has closed the transaction to acquire substantially all of the assets and operations of Joe Johnson Equipment (“JJE”), a leading Canadian-based distributor of maintenance equipment for municipal and industrial markets. Signing of the purchase agreement was announced on February 29, 2016.
As previously announced, the transaction involves initial consideration of C$108 million (approximately U.S. $83 million), subject to closing and post-closing adjustments for working capital. In addition, there is a deferred payment of C$8 million and a contingent earn-out payment of up to C$10 million.
JJE’s revenues in North America were approximately C$163 million (approximately U.S. $125 million) during the calendar year ending December 31, 2015. JJE specializes in serving municipalities, municipal
contractors and industrial contractors with high-quality products that include street sweepers, sewer cleaners, vacuum trucks, snow removal equipment and refuse collection equipment. JJE represents leading brands that include Federal Signal’s Elgin, Vactor, Guzzler and Jetstream lines, as well as Labrie, Trackless, Envirosight, Epoke and others. They also offer rental options, used equipment, parts, service and ancillary equipment.
“We are excited about joining forces with an outstanding organization like Joe Johnson Equipment,” said Jennifer L. Sherman, Federal Signal’s President and Chief Executive Officer. “Their product offerings, parts and service business, equipment rental capabilities and used equipment offerings will strengthen and expand our service to customers across North America and will help us accelerate our growth.”