DOWNERS
GROVE, Ill., Oct. 7, 2024
/PRNewswire/ -- Federal Signal Corporation (NYSE: FSS) ("Federal
Signal" or the "Company"), a leader in environmental and safety
solutions, today announced that it has completed the acquisition of
substantially all the assets and operations of Standard Equipment
Company ("Standard" or "Standard Equipment"), a leading distributor
of specialty maintenance and infrastructure equipment for municipal
and industrial markets.
Since 1969, Standard Equipment, with its principal location in
Elmhurst, Illinois, has been an
important partner for several of Federal Signal's product lines
including Vactor, Elgin, and
TRUVAC, currently distributing these products in parts of
Illinois and Indiana. Standard's comprehensive suite of
product and service offerings also includes rental equipment, used
equipment, parts, and repair and maintenance for key product
lines.
"The acquisition of Standard further builds upon our aftermarket
growth strategy that was originally put into action in 2016 and
adds an experienced team with deep regional knowledge and great
familiarity with Federal Signal products", said Jennifer L. Sherman, President and Chief
Executive Officer.
"Standard expands our existing aftermarket platform by adding
further scale and capabilities to our parts, services, rental, and
used equipment operations. The acquisition also further increases
our ability to target new customer cohorts, while expanding our
footprint in an attractive geographic market that can be leveraged
by additional Federal Signal product lines long term. We are
excited to welcome Standard and its employees to the Federal Signal
family."
The transaction includes an initial purchase price of
$38.8 million, subject to certain
closing adjustments, as well as a contingent earn-out payment of up
to $4.8 million that is based on the
achievement of certain financial targets over a specified
performance period.
The transaction closed on October 4,
2024. The Company expects the acquisition to be accretive to
earnings and cash flow in 2025.
About Federal Signal
Federal Signal Corporation (NYSE:
FSS) builds and delivers equipment of unmatched quality that moves
material, cleans infrastructure, and protects the communities where
we work and live. Founded in 1901, Federal Signal is a leading
global designer, manufacturer, and supplier of products and total
solutions that serve municipal, governmental, industrial, and
commercial customers. Headquartered in Downers Grove, Ill., with manufacturing
facilities worldwide, the Company operates two groups:
Environmental Solutions and Safety and Security Systems. For
more information on Federal Signal,
visit: www.federalsignal.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
This release contains various forward-looking statements as of the
date hereof and we undertake no obligation to update these
forward-looking statements regardless of new developments or
otherwise. Statements in this release that are not historical are
forward-looking statements. Such statements are subject to various
risks and uncertainties that could cause actual results to vary
materially from those stated. Such risks and uncertainties include
but are not limited to: economic and political uncertainty, risks
and adverse economic effects associated with geopolitical
conflicts, legal and regulatory developments, foreign currency
exchange rate changes, inflationary pressures, product and price
competition, supply chain disruptions, availability and pricing of
raw materials, interest rate changes, risks associated with
acquisitions such as integration of operations and achieving
anticipated revenue and cost benefits, work stoppages, increases in
pension funding requirements, cybersecurity risks, increased legal
expenses and litigation results and other risks and uncertainties
described in filings with the Securities and Exchange
Commission.
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SOURCE Federal Signal Corporation