Lindsay Manufacturing Co., Omaha, Neb., announced it has completed the acquisition of Barrier Systems Inc. (BSI) and its subsidiary, Safe Technologies Inc., through the merger of a wholly owned subsidiary of Lindsay with and into BSI. As a result, BSI has become a wholly owned subsidiary of Lindsay. BSI is engaged in the manufacturing of specialty roadway barriers and traffic-flow products that are used to reduce traffic congestion and enhance safety.
"We are pleased to announce the completion of this acquisition," said Rick Parod, Lindsay's president and chief executive officer. "This business represents a natural extension of our diversified manufacturing segment and is an excellent fit with our overall growth strategy. We are also excited to welcome the strong management team and employees of BSI to the Lindsay family. Additionally, we expect this acquisition to be accretive to earnings in our fiscal fourth quarter."
The total cash merger consideration paid to the stockholders of BSI and holders of options to acquire BSI stock was $35,000,000. The Lindsay Co. funded the transaction using a combination of its own working capital and borrowing under a new credit agreement with Wells Fargo Bank N.A., which includes an unsecured $30 million term note, credit agreement and interest rate swap transaction.
Prior to the merge, Lindsay supplied components used by BSI in its manufacturing process in the ordinary course of business. Lindsay did not consider this to be a material relationship with BSI or its shareholders.