Western Australian traffic sign manufacturer Sunny Signs Pty Ltd has been taken over by Melbourne-based rival Traffic Technologies Ltd.
Sunny Signs is the largest traffic sign manufacturer in WA, and the acquisition helps cement Traffic Technologies' position as Australia's only one-stop traffic services and hardware company.
Traffic Technologies will become the dominant supplier of traffic signs to the Western Australian market after combining the Sunny Signs business to its own.
Traffic Technologies chairman Sam Kavourakis said that the acquisition was in line with the strategic aim to create a national traffic management business.
Sunny Signs generates annual revenues of close to $6 million, and its earnings before interest and tax is approximately $600,000 per annum, and it will immediately increase Traffic Technologies' earning per share.
Synergy benefits with the nationwide De Neefe sign business as well as cross selling other traffic products are expected to further improve group performance.
Traffic Technologies joint managing director Con Scrinis said that Sunny Signs was a dynamic business that had been operating since 2001 with a track record for growth and profitability.
"It has an extremely capable management team who will fit well with the goals and culture of Traffic Technologies," he said.
Traffic Technologies' annualised revenues will increase to nearly $70 million as result of the Sunny Signs purchase.
The company is also screening further acquisition opportunities to consolidate the fragmented traffic services market, while growing profits and revenue.
Traffic Technologies has also recently acquired another complimentary business, Line Marking Services, and has a 10 per cent stake in WA-based traffic management company, the Warp Group.
