The Shyft Group, Inc. has acquired F3 MFG Inc., an aluminum truck body and accessory manufacturer. F3 will join the Shyft Specialty Vehicles business unit and continue to go-to-market under the DuraMag and Magnum brands.
The addition of DuraMag aluminum bodies to Shyft's product offerings follows the Company's recent acquisition of Royal Truck Body, a West Coast and Southwestern U.S. steel truck body maker. From 2015 to 2019, F3 sales grew at a compound annual growth rate of 74%, resulting in 2019 sales of approximately $25 million.
The transaction was paid for with available cash and is expected to be accretive in 2021.
"The F3 team has created tremendous momentum in a short amount of time, emphasizing innovation as a key element in its growth strategy and filling market gaps in the interest of meeting customer needs. We thank the management team for their efforts and welcome the full organization to The Shyft Group family," said Daryl Adams, President and Chief Executive Officer of The Shyft Group. "This acquisition dovetails nicely with last year's Royal Truck Body acquisition, and will provide our expanded national network of dealers, fleet managers, owners and operators the choice of two industry-leading brands and highly complementary product sets, wherever they do business."
F3 operates out of a 140,000-square-foot production facility in Waterville, Maine. The operation includes aluminum manufacturing, finishing, assembly, and installation of DuraMag contractor, service, and van bodies, as well as Magnum branded headache racks (also known as cab protection racks or rear racks). The location will continue to serve as the business' primary manufacturing and assembly facility for both product lines.
"We are delighted to be joining the Shyft family of brands," said Bill Cleaves, F3 MFG, Founder. "Shyft's leading reputation, approach to manufacturing and innovative culture are well aligned with F3. Together, we are excited about the opportunities to grow the DuraMag and Magnum brands and see them distributed nationally."