Tomorrow's Deals: Taking stock of what dealmakers are looking at.

Red light sale: In Federal Signal Corp.'s fourth-quarter earnings call, the company said it had put its struggling E-ONE fire rescue unit on the block, further noting that it has already been engaged in discussions with potential buyers.

E-ONE, based in Ocala, Florida, designs and manufactures fire rescue vehicles, including custom and commercial pumpers and tankers, aerial ladders and platforms, and rescue vehicles of all sizes.

In a conference call accompanying Federal Signal's earnings announcement, interim CEO Jim Goodwin spoke briefly about the decision to unload E-ONE. He noted that the unit's performance has improved under the guidance of newly installed E-ONE president Peter Guile, crediting him with expanding the company's dealer network. But Goodwin also said that weak market conditions have led to "significant reductions" in backlogs industrywide, citing that, "Certainly, E-ONE is subject to the same conditions."

Last year, Federal Signal's fire rescue division suffered an operating loss of $11 million as a result of lower sales and fixed cost …