Federal Signal Corporation (NYSE: FSS) (the “Company” or “Federal Signal”), a leader in environmental and safety solutions, today announced the signing of a definitive agreement to acquire Mega Corp. (“Mega”), a leading manufacturer of specialty vehicles and equipment for use in global metal extraction and construction markets, for cash consideration of $45.5 million, subject to post-closing adjustments. The purchase price includes the acquisition of Mega’s manufacturing facility in Albuquerque, New Mexico.
For nearly 50 years, Mega has been recognized for designing and manufacturing durable, high-performance water distribution equipment, service bodies, and specialty haulage equipment compatible with articulated trucks, rigid-frame trucks, and wheel tractor scrapers. With its products used in some of the world’s most demanding operating environments, Mega has developed a strong market presence in key international markets.
“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. We have followed Mega for many years and see this acquisition as a logical extension of our growing metal extraction support vertical within our specialty vehicle platform,” said Jennifer L. Sherman, President and Chief Executive Officer.
“Looking ahead, we see significant growth opportunities through our complementary product portfolio, shared customer base, and enhanced global reach. We also see strong potential to leverage the power of our specialty vehicle platform, particularly across key centers of excellence such as operations and aftermarket parts and service support. We are excited to welcome Mega’s approximately 95 talented team members to the Federal Signal family.”
Mega generated net sales of approximately $40 million for the year ended December 31, 2024, with aftermarket parts representing approximately 30% of net sales.
The transaction is expected to be accretive to earnings and cash flow in 2026.
Federal Signal anticipates completing the transaction during the first quarter of 2026, subject to customary closing conditions.
D.A. Davidson & Co. served as a financial advisor to the Company in connection with the transaction.
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