Federal Signal announced it has completed its acquisition of Mega Corp., bringing a manufacturer of specialty vehicles and equipment used in global metal extraction and construction markets into the company’s portfolio. The transaction follows a definitive agreement that Federal Signal signed on December 18, 2025, and the company said the deal is expected to be accretive to earnings and cash flow in 2026.
At signing, Federal Signal said it would acquire Mega for $45.5 million in cash, subject to post-closing adjustments, and that the purchase price included Mega’s manufacturing facility in Albuquerque, New Mexico. Mega has operated for nearly 50 years and has focused on equipment designed for demanding field conditions, including water distribution equipment, service bodies, and specialty haulage equipment for articulated trucks, rigid-frame trucks, and wheel tractor scrapers.
The company also highlighted the potential to expand reach outside the U.S. Mega’s products are used in some of the world’s most demanding operating environments, and Federal Signal has pointed to Mega’s presence in key international markets as a strategic advantage as the combined platform pursues growth opportunities.
The acquisition adds a business with a meaningful aftermarket component, which can provide recurring revenue through parts and service support. Federal Signal previously said Mega generated about $40 million in net sales for the year ended December 31, 2024, with aftermarket parts representing roughly 30% of sales, and that about 95 employees would join Federal Signal as part of the transaction.
Federal Signal said it is a global designer and manufacturer of products and total solutions serving municipal, governmental, industrial, and commercial customers. The company, founded in 1901 and headquartered in Downers Grove, Illinois, operates Environmental Solutions and Safety and Security Systems groups and has manufacturing facilities worldwide.
Support: D.A. Davidson & Co. served as Federal Signal’s financial advisor in connection with the transaction.
KEY QUOTE:
“We are excited to complete the acquisition of Mega and formally welcome its talented team to the Federal Signal family. Mega represents a compelling strategic fit that enhances our depth in the global metal extraction support equipment market. The combination of Mega with our existing Ground Force and TowHaul businesses strengthens our specialty vehicle platform and positions us to capture significant growth opportunities through a complementary product portfolio, shared customer base, and enhanced global reach.”
Jennifer L. Sherman, President and Chief Executive Officer
