Federal Signal Corp. closes on acquisition of Standard Equipment Co. – Chicago Business Journal

Equipment manufacturer Federal Signal Corp. has completed its $39 million acquisition of Standard Equipment Co.

The Chicago-area companies have worked together previously, with Standard Equipment being a distributing partner for several of Federal Signal’s product lines including Vactor, Elgin, and Truvac.

“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 Sherman, president and CEO of Federal Signal, in a statement.

Elmhurst-based Standard Equipment also offers products and services including rental equipment, used equipment, parts, and repair and maintenance for key product lines.

“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,” Sherman said.

The purchase price is 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 companies said.

Federal Signal expects the acquisition to be accretive to earnings and cash flow in 2025.

Sign up for the Business Journal’s free daily newsletter to receive the latest business news impacting Chicago.