Federal Signal Completes Acquisition of Hog Technologies, A Leading U.S. Manufacturer of Road-Marking, Line-Removal and Waterblasting Equipment

Core Viewpoint - Federal Signal Corporation has completed the acquisition of Waterblasting, LLC, owner of Hog Technologies, for an initial purchase price of $78.1 million, with potential earn-out opportunities based on financial performance in 2025 [1][5] Group 1: Acquisition Details - The acquisition includes substantially all assets and operations of Hog Technologies, a leading manufacturer of truck-mounted road-marking, line-removal, and waterblasting equipment [1] - The initial purchase price is funded through existing cash and borrowings under the Company's revolving credit facility, subject to customary adjustments [1] - Federal Signal has also agreed to acquire Hog's primary manufacturing facility in Stuart, Florida for$14.5 million [1] Group 2: Company Background and Market Position - Hog Technologies, founded in 1988, is recognized for its innovative products serving infrastructure, municipal, and airport markets, including patented runway rubber-removal systems [2] - Hog generated annual revenues of approximately $65 million in 2024, with aftermarket parts and services accounting for about 35% of total revenues [4] Group 3: Strategic Alignment and Future Outlook - The acquisition aligns with Federal Signal's strategic priorities to grow its specialty vehicle platform and enhance its leadership in the infrastructure maintenance sector [4] - Management anticipates the acquisition will be accretive to earnings and cash flow in 2025, with further outlook details to be provided during the fourth quarter 2024 earnings call [5]