Federal Signal has signed a definitive agreement to acquire all assets and operations of Trackless Vehicles Limited, a manufacturer of multi-purpose, municipal sidewalk tractors.
The acquisition also includes the operations of Work Equipment Limited, the exclusive Trackless dealer in Southwestern and Northern Ontario, Canada.
The agreement will see Federal Signal acquire the companies for $54 million. The transaction also includes a contingent earn-out payment of up to C$6 million.
“The acquisition of Trackless represents a strong addition to our municipal product offerings and further bolsters our position as an industry-leading diversified manufacturer of specialized vehicles for maintenance and infrastructure markets,” said Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal.
“With our Joe Johnson Equipment subsidiary currently the largest distributor of Trackless products in North America, we have a great appreciation of Trackless’ products and reputation for quality and innovation. We are excited about the opportunities to 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.”
Trackless Vehicles is headquartered in Courtland, Ontario, and employs about 90 people. Last year, the company generated about $35 million in revenue.
“Trackless has a proud history of growth through customer focus, quality products, and excellent service,” said Douglas Cadman, President of Trackless. “Federal Signal, through Joe Johnson Equipment, has been a valuable long-term partner of ours, and we are excited to be joining forces to launch the next phase of our growth.”
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Trackless manufactures the MT Series 7 tractor (MT7), which uses a variety of attachments to provide year-round value to its customers. Snow and ice attachments, including de-icing solutions, plows, and snowblowers can be used by customers during winter months, while during warmer periods, other attachments can be used in a variety of applications, such as concrete/asphalt maintenance, sweeping, tree and vegetation control, and materials hauling.
Trackless also supports the recurring aftermarket needs of its customers through a comprehensive parts offering, sales of which represent up to 20 per cent of annual revenue.
Founded in 1901 and headquartered in Oak Brook, Illinois, Federal Signal is a global designer, manufacturer and supplier of products and total solutions that serve municipal, governmental, industrial and commercial customers.
The company expects to complete the acquisition in the next 90 days, subject to customary closing conditions, and expects the acquisition to be accretive in 2023.
