Federal Signal agrees to acquire Mega Corp.

Federal Signal Corp. signed a definitive agreement on Dec. 18 to acquire Mega Corp. for cash consideration of $45.5 million.

Downers Grove, Illinois-based Federal Signal says the deal is subject to post-closing adjustments and includes Mega’s manufacturing facility in Albuquerque, New Mexico.

Mega Corp. is a manufacturer of specialty vehicles and equipment for use in global metal extraction and construction markets. According to Federal Signal, 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.

“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,” says Jennifer L. Sherman, president and CEO of Federal Signal Corp. “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.”

According to Federal Signal, Mega consists of about 90 employees and generated net sales of about $40 million in 2024 with aftermarket parts representing about 30 percent of that total. The firm expects this transaction to be accretive to earnings and cash flow in 2026 and expects the deal to close during the first quarter, subject to customary closing conditions.

"Looking ahead, we see significant growth opportunities through our complementary product portfolio, shared customer base, and enhanced global reach,” Sherman says. “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.”