Federal Signal Acquires Standard Equipment Company

By Tamara Parker • Monday, October 07 15:17 • Permanent Link

Federal Signal Corporation (NYSE: FSS) has completed the acquisition of Standard Equipment Company for an initial purchase price of $38.8 million, with a potential additional earn-out payment of up to $4.8 million based on achieving certain financial targets over a specified performance period. This acquisition is expected to be accretive to earnings and cash flow in 2025.

Standard Equipment Company, based in Elmhurst, Illinois, has been a partner for several of Federal Signal's product lines since 1969, distributing products in parts of Illinois and Indiana. The company offers a comprehensive suite of product and service offerings, including rental equipment, used equipment, parts, and repair and maintenance for key product lines.

Jennifer L. Sherman, President and CEO of Federal Signal, highlighted that the acquisition of Standard Equipment Company further builds upon the company's aftermarket growth strategy, adding an experienced team with deep regional knowledge and familiarity with Federal Signal products. She emphasized that the acquisition expands the existing aftermarket platform, adding scale and capabilities to parts, services, rental, and used equipment operations.

The acquisition also enhances Federal Signal's ability to target new customer cohorts and expands its footprint in an attractive geographic market that can be leveraged by additional Federal Signal product lines in the long term.

Federal Signal Corporation, founded in 1901, is a leading global designer, manufacturer, and supplier of products and total solutions serving municipal, governmental, industrial, and commercial customers. The company operates two groups: Environmental Solutions and Safety and Security Systems.

This acquisition marks a significant milestone for Federal Signal Corporation as it continues to strengthen its position in the environmental and safety solutions market, leveraging the expertise and capabilities of Standard Equipment Company to drive growth and expand its offerings to customers. Today the company's shares have moved 1.1% to a price of $91.72. Check out the company's full 8-K submission here.

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