Federal Signal Corporation announced the completion of its acquisition of substantially all the assets and operations of Standard Equipment Company on October 4, 2024. Standard Equipment is a leading distributor of specialty maintenance and infrastructure equipment, and has been an important partner for Federal Signal's Vactor, Elgin, and TRUVAC product lines in parts of Illinois and Indiana since 1969.
The initial purchase price for the acquisition was $38.8 million, subject to certain closing adjustments, with a potential contingent earn-out payment of up to $4.8 million based on the achievement of specific financial targets. This transaction is expected to be accretive to Federal Signal's earnings and cash flow in 2025.
The acquisition expands Federal Signal's existing aftermarket platform by adding further scale and capabilities to its parts, services, rental, and used equipment operations. It also increases the company'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 long term.
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