Federal Signal Acquires MRL
“These are exciting times in the road marking industry,” Jennifer L. Sherman, Federal Signal Corp.’s president and chief executive officer, told investors on a conference call May 14.
Federal Signal, Oakbrook, IL, the parent company of Elgin Sweeper, had just signed an agreement to acquire the assets and operations of Mark Rite Lines Equipment Company, a manufacturer of truck-mounted and ride-on road-marking equipment. The $55 million acquisition includes the operations of HighMark Traffic Services Inc., a wholly owned subsidiary of MRL, which provides road-marking services, primarily within Montana.
“As an industry leader, MRL designs, manufactures and sells a range of innovative products and customer-driven solutions for road marking application, line removal and pavement grooving. Over the last few decades MRL has established itself as an industry leader and innovator, providing its customers with a one-stop shop solution, offering a wide range of products coupled with outstanding training, customer service and aftermarket support.
“We target companies that are market leaders in a niche market and MRL is just that,” Sherman said. “Historically MRL has had a primary focus on the private contractor segment of this market, commanding the number one position in terms of market share.
MRL, Billings, MT, employs approximately 250 people; employees and the current management team are expected to remain with the company.
"MRL has had a great run over the last several years, and we are thrilled to be combining forces with the best partner to fuel the next phase of our growth," said Jim Spielman, president and general manager of MRL. "We believe there is tremendous opportunity to leverage Federal Signal's distribution network and develop best-in-class manufacturing practices to realize further operational improvements, so that we can serve our customers even more effectively and competitively."
MRL’s portfolio of road marking equipment consists of truck-mounted vehicles and self-propelled ride-on application solutions which utilize a broad array of materials including thermoplastics, paint and epoxy. In addition, MRL manufactures a series of trucks for mechanical line-removing and high-speed pavement grooving.
“The acquisition represents a natural and strategic extension of our market position as a specialty vehicle manufacturer serving maintenance and infrastructure markets. It also allows us to further diversify our revenue streams and end market exposures as we seek to mute the impact of market cyclicality," Sherman said.
"MRL gives us an opportunity to leverage our expertise in building chassis-based vehicles… [and] utilize our existing distribution channels and aftermarket platform to accelerate MRL's growth. MRL has a clear leadership position in its markets and an experienced management team that I am confident will flourish as part of Federal Signal."
Sherman said MRL also has an attractive aftermarket business consisting of parts sales and service, representing as much as 25% of MRL revenue. She said Federal Signal’s recent expansion of service centers throughout North America will enable to company to capitalize on MRL’s aftermarket business and grow it.”
Tailwinds will drive growth
Sherman estimated the overall market for road marking equipment in the United States to be $200 million and said the acquisition positions MRL and Federal Signal to take advantage of some “tailwinds” expected to drive growth in the road marking industry.
"With the need to invest in aging infrastructure and the anticipated need for road-marking changes to support the future evolution of connected and autonomous vehicles, these are exciting times in the road-marking industry,” Sherman said.
She said the United States has roughly 9 million road miles, two-thirds of which are paved, requiring pavement marking.
“The recurring nature of spending and the continuous demand for road markings given their importance to the country’s transportation infrastructure, adding stability to MRL’s revenue base and has enabled MRL to be relatively resilient to previous economic downturns.”
“Decades of underinvestment in infrastructure has led to deteriorating and often dangerous road conditions. Infrastructure investment is critical to the safety of our citizens and the well-being of everyone as evident by the recent bipartisan support of a $2 trillion spending bill to overhaul U.S. infrastructure,” she said. “Road markings will continue to play a pivotal role in our roads and highway system for years to come.
800 PAVEMENT to Host Leadership Conference
In November 2019, the 800 PAVEMENT Network will host its first Leadership Conference, an event exclusively for owners and leaders. The three-day meeting will be on November 13 – 15, 2019, at the Battery Wharf Hotel, Boston, MA.
Open only to 800 PAVEMENT Network members, the Leadership Conference will offer an agenda that balances business and growth opportunity. Through small group meetings, one-on-one sessions, sit- down meals and high-end social events, the conference attendees and vendor partners will get tailored, captive time to interact, exchange ideas, and engage with one another.
“The overall success of our network events to date, as well as the growth and development of our network as a whole, has brought us to this point,” said Kara Bresciani, 800 PAVEMENT Network manager of network relations. “For many years we’ve talked about an event like this, and we’re excited and confident to be bringing it to life and exceed expectations.”
The event will kick off Nov. 13 with a welcome reception and cocktail hour; classroom sessions will follow on Nov. 14, and one-on-one sessions with vendors will follow on Nov. 15.
“Our goal for the conference is to provide content and educate our network members with topics customized to them, specifically to impact their business,” says Andrew Musto, U.S. Pavement Services COO. “I’m personally most excited about the classroom topics being geared specifically toward the owners and leaders in the pavement industry. That is going to be transformational.”
The one-on-one sessions, taking place on the third day of the event, will provide attendees and vendor partners the opportunity “to sit down with who they want, to talk about what they want.” Each person’s schedule will be customized to ensure their one-on-one meetings take place and are most impactful to their business, maximizing the opportunity for all involved.
On Nov. 14, 800 PAVEMENT also will host Network Night 2.0, a revamp of the Network’s annual one-night celebration at the National Pavement Expo. It will be held at Fenway Park, home of the Boston Red Sox, and hosted by lead sponsor World Insurance Associates.
“In my 35 years in our industry, I’ve learned the importance of working on the business as well as in it, and how networking with like-minded companies can improve my bottom line,” said Mike Musto, founder of 800 PAVEMENT Network and CEO of U.S. Pavement Services. “I can confidently say there has never been an event like this in the pavement world, and we can’t wait to bring it exclusively to our members in 2019.”
For more information on the Leadership Conference or for more information on the 800 PAVEMENT Network, visit 1800pavement.com/Boston or call 1-800-PAVEMENT.
Hercules Opens 2nd STAR Facility
Hercules Sealcoat Manufacturing Inc., a member of STAR Inc., recently opened its second asphalt sealcoat facility in Atlanta, GA.
The Fulton Industrial Store will market Star-Seal products in Alabama, north Florida, Georgia, Mississippi, North Carolina, South Carolina and east Tennessee.
Hercules Sealcoat reports it is the second-longest continually owned and operated sealcoat plant in the southeast (Star-Seal of Florida is first).
SealMaster Opens in Bakersfield, CA
SealMaster has opened a new distribution center and showroom in Bakersfield, CA, located at 518 Sumner Street. The franchise, which serves Central California from Fresno to Bakersfield and Santa Barbara to Monterey is managed by Carl Joiner Jr.
Joiner returns to Bakersfield after seven years in Ohio where he was crew chief for ThorSport Racing's NASCAR Truck Series' No. 88 Ford F-150 driven by Matt Crafton, who won series’ championships in 2013 and 2014.
Joiner said opening the business was part of the plan he developed when he and his wife, Deidra, decided they wanted to return to Bakersfield.
“We wanted the kids to grow up around family,” Joiner says, noting they now live nearby aunts, uncles, cousins and grandparents. He’ll also be running his business with the help of his father, a close cousin, and Deidra.
Before their move to Ohio, Joiner ran Joiner Motorsports in Bakersfield for 12 years, doing business with ThorSport Racing, among other teams and individuals throughout the nation. In fact, his new SealMaster franchise is located in the same building that was once his race shop.
So why the jump to a pavement maintenance supply business?
Joiner says he learned a lot about SealMaster from ThorSport Racing’s owner, who established the franchise system in the early 1990s. “I always heard him talking about the franchises and how well they were doing,” Joiner says. “As long as I follow the plan, I know I’ll be set up for success.”
The Bakersfield franchise, one of more than 100 privately owned locations in the United States, will offer pavement sealer and a full line of pavement maintenance products and equipment.
Advanced Pavement Group Acquires Easmunt Paving Inc.
Advanced Pavement Group announced that they have acquired Easmunt Paving, Inc. of Millville, NJ.
It is the most recent acquisition in Advanced Pavement Group Corp.'s strategic expansion in the Northeast and Mid-Atlantic region.
Since its formation, Advanced Pavement Group has made deliberate acquisitions in the region, spanning Long Island, NY, South Plainfield, NJ, and Wilmington, DE. The addition of Easmunt Paving in Millville, NJ, further supports a coverage area including New Jersey, Metro New York, and Westchester County, Connecticut, Delaware, Southeastern Pennsylvania, and Northeastern Maryland.
Bruce Easmunt, president of Easmunt Paving, will remain as president of Advanced Pavement Group’s South New Jersey branch. Bruce is the latest addition to a leadership team with a combined 130 years of industry experience.
"It was time to explore the next chapter in Easmunt’s story. Becoming part of Advanced Pavement Group solidifies a strategy for growth and provides expanded opportunities for our employees. We felt it was important that we align with an organization where the talents of our people could be amplified,” Easmunt says.
Advanced Pavement Group’s CEO, Joseph J. Tinney, Jr. shared, “The acquisition of Easmunt Paving is certainly significant in that it positions us to provide additional services and support to our new customers, as well as, support existing customers in the South New Jersey market. We are excited to welcome the Easmunt team into our growing organization as they are a clear professional and cultural fit.”
Crafco Acquires Telfer
Crafco announced it has acquired Telfer Pavement Technologies’ (TPT) operations in Anderson, CA, adding another supply center and bolstering its presence across the West Coast. The 8,000-sq.-ft. facility on 1.25 acres will be rebranded as a Crafco Supply Center.
Through the addition, Crafco will offer an array of paving fabrics, shade cloths, geogrids, gabions, and erosion-control materials, helping the company grow into the construction industry and related markets in that region. The Anderson location will stock more Crafco products and give customers access to all Crafco materials and equipment.
“TPT–Anderson has built a solid platform and exceptional reputation,” said Don Brooks, president of Crafco. “Integrating this business unit into Crafco will give our customers new synergies and purchasing efficiencies, while ensuring they continue to get the quality solutions they need to best manage their pavement preservation initiatives.”
Crafco Improves ActionPave Sealer Line
Crafco Inc., Chandler, AZ, announced it has completed formulation enhancements and is rolling out a large-scale pavement sealer lineup to various regions across the nation. The roll-out covers the ActionPave brand of sealers, which are available at Crafco Pavement Preservation Supply Centers or through a Crafco territory manager.
“Through continued engineering innovations and our research partnership with STAR, (Specialty Technology and Research) Inc., we’re providing the most advanced sealer products and programs in the industry,” said Monte Collins, Crafco’s sealcoating product manager.
ActionPave sealer is available in two formulations: RT (refined tar) and LP (petroleum resin, an alternative to refined tar sealer). Grade options available are:
Classic — A professional-grade sealer.
Pro — Professional-grade sealer improved with a proprietary blend of polymers that provide increased resistance to water and UV degradation, while maintaining the rich, black color longer.
Supreme — A superior-grade sealer that doubles the proprietary blend of polymers of Pro to deliver our highest-performing, longest-lasting sealer.
Aviator — A premium-grade sealer formulated exclusively for airports that is manufactured and adjusted to meet FAA Specification P-631.
Volvo Opens Toronto Distribution Center
Volvo Construction Equipment (Volvo CE) has opened a new 181,00-sq.-ft. parts distribution center in Toronto, Canada, replacing a regional parts depot in Toronto. The facility joins Volvo distribution centers in Byhalia, MS; Columbus, Ohio; and Reno, NV.
The Canadian distribution center increases Volvo CE’s distribution footprint so the company will be able to deliver critical parts the next day after an order is placed to dealers in most major markets across Canada. “We’re very excited with the opening of this modern, efficient parts distribution center, which is part of our strategy to improve uptime not only in Canada, but across North America,” said Stephen Roy, president of Volvo CE Americas. “It shows Volvo CE’s commitment to provide our customers with premium machines and premium aftersales services.”
Volvo Group Service Market Logistics operates the new parts distribution center, which will not only provide parts for Volvo CE dealers, but also for Volvo’s other business areas, such as Volvo Trucks.
