Federal Signal Completes Acquisition of Standard Equipment Company

Core Viewpoint - Federal Signal Corporation has completed the acquisition of Standard Equipment Company, enhancing its aftermarket growth strategy and expanding its operational capabilities in the municipal and industrial markets [1][3][4]. Company Overview - Federal Signal Corporation is a leader in environmental and safety solutions, providing high-quality equipment for municipal, governmental, industrial, and commercial customers [6]. - Founded in 1901 and headquartered in Downers Grove, Illinois, the company operates two main groups: Environmental Solutions and Safety and Security Systems [6]. Acquisition Details - The acquisition includes an initial purchase price of $38.8 million, with a potential earn-out payment of up to $4.8 million based on financial performance [4]. - The transaction closed on October 4, 2024, and is expected to be accretive to earnings and cash flow in 2025 [5]. Strategic Implications - The acquisition of Standard Equipment enhances Federal Signal's existing aftermarket platform, allowing for increased scale and capabilities in parts, services, rental, and used equipment operations [4]. - It also enables the company to target new customer segments and expand its geographic footprint, leveraging additional product lines in the long term [4].