Federal Signal to acquire Mark Rite Lines for initial purchase price of $55.5M
Federal Signal announced the signing of a definitive agreement to acquire the assets and operations of Mark Rite Lines, or MRL, a U.S. manufacturer of truck-mounted and ride-on road-marking equipment for an initial purchase price of $55.5M, subject to post-closing adjustments. In addition, there is a contingent earn-out payment of up to $15.5M. The acquisition includes the operations of HighMark Traffic Services, a wholly-owned subsidiary of MRL, which provides road-marking services, primarily within the state of Montana. MRL, which is headquartered in Billings, Montana and employs approximately 250 people, generated revenues of $67M for the year ended December 31, 2018, with an EBITDA margin of 13%. Its product portfolio of road-marking equipment consists of truck-mounted and self-propelled, ride-on application solutions, which utilize materials including thermoplastics, paint and epoxy, as well as line-removal and pavement-grooving vehicles.