GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm, is pleased to announce that it has entered into a definitive agreement to sell its portfolio company, Truck Bodies and Equipment International (“TBEI”), a leading U.S. manufacturer of dump truck bodies and trailers, to Federal Signal Corporation (NYSE:FSS) (“Federal Signal”), a leader in environmental and safety solutions, for $270 million, subject to post-closing adjustments. The transaction is expected to close post customary closing conditions. During the twelve months ended March 31, 2017, TBEI generated revenues of $206 million and an EBITDA margin of approximately 18%.
GenNx360 acquired TBEI in September 2015. During the investment period, the strategic acquisition of Travis Body and Trailer further strengthened TBEI’s brand providing expertise in aluminum dump trailers and dump bodies, expansion into the Southwest, a strong and loyal dealer network, and positioned TBEI as a platform for growth. TBEI has successfully built a portfolio of strong brands, which currently occupy premier market share positions in their respective product categories, through a combination of an intense focus on operational excellence, a comprehensive distribution strategy, and continuous attention to its customers’ primary requirements for a high-quality product and short lead times.
“The success of our investment in TBEI demonstrates GenNx360’s ability to execute on our investment strategy to substantially increase the Company’s revenue and profitability through synergistic acquisitions, operational efficiencies, and an unyielding commitment to serve customers better,” said Ron Blaylock, a Founder and Managing Partner of GenNx360. “We backed a strong management team headed by Robert Fines, TBEI’s President and Chief Executive Officer. We are excited that this exit positions TBEI for continued success, while also generating highly attractive returns for GenNx360’s Limited Partners,” added Ron.
“The TBEI business is a strong strategic fit with our ESG businesses and allows us to broaden our focus on maintenance and infrastructure markets. With its large industrial customer base, TBEI will accelerate the achievement of our long-standing objective of balancing the mix of revenue streams between municipal and industrial. This acquisition is consistent with our disciplined capital deployment strategy, which targets the acquisition of high performing businesses that grow and compound our cash flow,” said Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal.