Federal Signal Enhances Infrastructure Solutions with Hog Technologies Acquisition

Federal Signal's Strategic Acquisition of Hog Technologies

Federal Signal Corporation, a well-known entity in the environmental and safety solutions sector, recently announced a significant milestone in its growth strategy. The company has finalized the acquisition of the vast majority of assets and operations belonging to Hog Technologies, a prominent manufacturer based in the U.S. specializing in road-marking, line-removal, and waterblasting equipment. This strategic move, revealed on February 12, 2025, comes at an initial cost of $78.1 million, funded through existing cash reserves and borrowings via the company's credit facility.

Hog Technologies, established in 1988, has carved out a significant presence in infrastructure maintenance, catering to municipal, airport, and other markets. The company is known for its innovative products which include patented systems for rubber and paint removal, alongside advanced waterblasting units. About 35% of Hog's annual revenue, which was around $65 million in 2024, derives from aftermarket parts and services. This highlights not only the robustness of its product offerings but also the potential for continued growth in their service sectors.

The acquisition deal is not just a one-off transaction; it also includes a contingent earn-out that could contribute an additional $15 million based on reaching specific financial targets in 2025. Furthermore, Federal Signal plans to acquire Hog's main manufacturing site in Stuart, Florida, for an additional $14.5 million. This location is pivotal for continuing the manufacture of Hog's wide range of products, ensuring that Federal Signal can leverage Hog's existing infrastructure and expertise.

Jennifer L. Sherman, President and CEO of Federal Signal, expressed her enthusiasm for the acquisition, stating that it aligns with their goal of enhancing their specialty vehicle platform. She noted that Hog's experienced management team and strong presence in international markets would bolster Federal Signal’s leadership and product offerings in infrastructure maintenance. The integration of Hog's portfolio with Federal Signal’s existing products is expected to enhance their overall service to clients and open new avenues for growth.

"Our 150 team members at Hog are committed to our products that keep communities safe, including vital highway and airport infrastructures," said Vince Giordano, President of Hog Technologies. His statement reflects the pride and dedication that Hog's workforce has towards their mission.

James P. Crocker, the Founder and CEO of Hog Technologies, expressed excitement about the merger, characterizing it as an excellent cultural fit that promises to enhance service delivery and community engagement. The synergy created by combining the two firms is anticipated to yield significant benefits in customer service and retention, which is a vital component of success in competitive markets.

Moreover, the closing of this transaction marks not only a critical step for Federal Signal but also a transformative opportunity for Hog Technologies, allowing it to operate under a more significant brand while maintaining its commitment to excellence in customer service. As both companies aim for continued product innovation and enhanced service solutions, this alignment underscores a shared vision that could define the future of infrastructure maintenance.

Looking ahead, Federal Signal is expected to update its outlook for 2025, incorporating the impacts of this acquisition into its earnings forecast later this month. This announcement marks an exciting chapter for both firms, underscoring the importance of strategic mergers in driving growth and innovation in the sector. With the integration still unfolding, stakeholders are keenly interested in how this acquisition will reshape the infrastructure maintenance landscape.