July 16, 2009 (FinancialWire) — Federal Signal Corp. (NYSE: FSS) has completed the sale of Ravo Holding B.V., a manufacturer of compact street sweepers located in the Netherlands, to Fayat Group. The selling price was around $12 million.

France-based Fayat is engaged in the European roadbuilding equipment sector as well as in the building and public works industry.

Federal Signal plans to use the sales proceeds to pay down debt and fund its core operations. The company will recognize a non-cash loss on the sale in the second quarter, but does not expect the transaction to have a material impact on the company’s forecasted earnings for the second half of the year.

William Osborne, CEO of Federal Signal, said “The sale of Ravo is consistent with our strategy to streamline our operations and focus our business portfolio, and the proceeds from the transaction will provide us with more financial flexibility.”

Oak Brook, Illinois-based Federal Signal is a designer and manufacturer of products and total solutions that address the safety and security systems, environmental solutions and fire rescue markets. The company serves municipal, governmental, industrial and institutional customers.

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