Federal Signal Corporation announced a definitive agreement to acquire Mega Corp., a specialty‑vehicle and equipment manufacturer for the metal‑extraction and construction markets, for $45.5 million in cash. The deal includes Mega’s Albuquerque, New Mexico, manufacturing facility and adds 95 employees to Federal Signal’s workforce.
The acquisition is positioned as a strategic extension of Federal Signal’s Ground Force and TowHaul businesses. Mega’s product line—durable water‑distribution equipment, service bodies, and haulage solutions—complements Federal Signal’s existing specialty‑vehicle platform and provides immediate access to key international markets where Mega has a strong presence. By integrating Mega’s aftermarket parts, which account for roughly 30 % of its $40 million 2024 net sales, Federal Signal aims to deepen its footprint in the global metal‑extraction support equipment market and create cross‑selling opportunities across its environmental‑solutions portfolio.
Financially, the purchase values Mega at about 1.1 times its 2024 revenue, a modest multiple that reflects the steady, recurring revenue from aftermarket parts and the strategic fit with Federal Signal’s growth strategy. Management expects the acquisition to be accretive to earnings and cash flow in 2026, with the transaction closing in the first quarter of 2026 subject to customary conditions. The deal adds a proven manufacturing base and a skilled workforce that can accelerate Federal Signal’s expansion into new geographic regions and product categories.
Federal Signal’s Q3 2025 results—net sales up 17 % and operating income up 24 % year‑over‑year—provide a strong financial foundation for the acquisition. The company’s recent guidance raised full‑year revenue and operating‑income targets, reflecting confidence in its aftermarket ecosystem and the scalability of its specialty‑vehicle platform. The Mega acquisition is a continuation of this strategy, following recent purchases of Hog Technologies and New Way Trucks, and signals a deliberate focus on inorganic growth to mitigate cyclicality in the construction and mining sectors.
President and CEO Jennifer L. Sherman emphasized that “the acquisition of Mega enhances our depth in the global metal‑extraction support equipment market and represents a compelling strategic fit with our existing Ground Force and TowHaul businesses.” She added that the deal will allow Federal Signal to leverage its specialty‑vehicle platform to capture new revenue streams and strengthen recurring aftermarket parts and service opportunities.
The transaction positions Federal Signal to capitalize on growing demand for durable, OEM‑compatible equipment in the metal‑extraction industry, while reinforcing its environmental‑solutions group and expanding its global reach. The acquisition is expected to deliver incremental revenue, margin expansion through cross‑selling, and a stronger competitive position in a market that values reliability and long‑term service relationships.
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