TerraVest Capital Inc. announced that a wholly-owned subsidiary of the company has agreed to acquire the assets of Signature Truck Systems Inc. and Lakeshore Metal Works Inc., each a privately-owned Michigan-based company primarily focused on assembling propane bobtails for fuel distributors across the U.S.
Signature generated earnings before interest, taxes, depreciation and amortization in excess of $3 million in 2014, according to a press release. The propane vehicle supplier began operations in 1999.
The acquisition is expected to close on or around April 1 and is subject to customary closing conditions. Following the closing of the acquisition, the business of Signature will operate as Signature Truck Systems LLC.
Joe Volk, founder of Signature, and Mike VanDenBoom, director of operations, will continue on at Signature Truck Systems LLC and play a pivotal role in growing the business, the press release notes.
Charles Pellerin, executive chairman of TerraVest, says the acquisition fits the company’s strategy of expanding its propane business into the U.S. “where we see substantial growth opportunities.”
“Signature will work closely with our leading Canadian propane business, Propar Inc., to provide an enhanced product suite to U.S. customers,” Pellerin adds.