Wabash National Corporation announced January 25 that it has entered into a definitive agreement to acquire certain assets of the tank and trailer business of Beall Corporation, a Portland, OR-based manufacturer of aluminum tank trailers and related equipment, for approximately $15 million in cash. The acquisition is expected to close during the first quarter of 2013.
“This acquisition represents the latest step in our ongoing initiative to diversify outside of our core Commercial Trailer Products business,” says, Dick Giromini, Wabash National president and chief executive officer. “Additionally, these assets and the Beall brand name strategically complement our Walker Group business through product portfolio expansion and geographic growth in the West. Beall has a long-standing reputation for industry-leading product designs and quality. We’re excited about strengthening our tank trailer offering with another premier brand as we continue to identify opportunities to further grow and enhance shareholder value.”
Commenting on the transaction, Doug Chapple, Walker Group president, says: “Established in 1905, the Beall brand further enhances our industry-leading liquid tank product lines which include Walker Transport and Brenner Tank. The addition of Beall’s DOT406 petroleum tank trailer and dry bulk product line will open up new markets providing the broadest product portfolio in the tank industry and, with the addition of production capabilities in Portland, creates a truly nationwide footprint.”
Beall Corporation began Chapter 11 reorganization proceedings in September of 2012, followed by a bankruptcy-court approved auction of its assets in December. Wabash National was the winning bidder for certain assets of Beall’s tank and trailer business, including its Portland manufacturing facility, as well as equipment, inventory, certain product designs, intellectual property and other related assets. The closing of the transaction is subject to the Bankruptcy Court for the District of Oregon entering a final order approving the acquisition by Wabash National pursuant to and in accordance with the definitive agreement.
Wabash National will provide additional information and discuss this transaction during its Fourth Quarter and Year-end earnings release conference call scheduled for Wednesday, February 6, 2013, at 10:00 am EST. The phone number to access the conference call is 888-771-4371, participant code 34129820. A live audio webcast of the call will be available through the company’s website at www.wabashnational.com.