DOWNERS
GROVE, Ill., Feb. 12,
2025 /PRNewswire/ -- Federal Signal Corporation
(NYSE: FSS) ("Federal Signal" or the "Company"), a leader in
environmental and safety solutions, today announced that it has
completed the acquisition of substantially all the assets and
operations of Waterblasting, LLC, owner of Hog Technologies
("Hog"), a leading U.S. manufacturer of truck-mounted road-marking,
line-removal, and waterblasting equipment for an initial purchase
price of $78.1 million. The initial
purchase price, which was funded through existing cash on hand and
borrowings under the Company's revolving credit facility, is
subject to certain customary adjustments for working capital and
debt-like items. In addition, there is a contingent earn-out
opportunity of up to $15 million,
based on the achievement of specified financial targets during
2025. Additionally, Federal Signal has entered into a definitive
agreement to acquire Hog's primary manufacturing facility in
Stuart, Florida for $14.5 million.
Founded in 1988, Hog has established itself as a leading innovator
serving infrastructure, municipal and airport markets, with a broad
portfolio of products, including rubber- and paint-removal systems,
pavement-marking and grinding trucks, and advanced waterblasting
units. Hog has secured a leading position in the industry through
its patented equipment designs, deep product expertise, technology
leadership, and understanding of the specific requirements of its
customers. One of Hog's unique innovations is a patented runway
rubber-removal system, which is widely recognized and used by major
airports across the globe.
"Our 150 team members take exceptional pride in manufacturing our
suite of Hog products that keep our communities, highways and
airport runways safe," said Vince
Giordano, Hog's President.
"This acquisition is aligned with our strategic priorities of
growing our best-in class specialty vehicle platform," said
Jennifer L. Sherman, President and
Chief Executive Officer. "Hog's product portfolio, experienced and
talented management team, and strong presence in international and
airport markets provide a unique opportunity to strengthen our
leadership in the infrastructure maintenance sector, broaden our
product offerings and unlock future growth opportunities. We are
particularly excited about the synergies this transaction creates
within our existing road-marking, line-removal, and waterblasting
offerings. We also believe that Hog's technological advancements
and expansive aftermarket parts and service business will enable
Federal Signal to better serve our customers in the future."
"Federal Signal has been a valued long-term vendor and partner. We
are excited to join forces to launch the next phase of growth at
Hog," said James P. Crocker, Founder
and CEO, Hog Technologies. "This partnership is a natural cultural
fit with both companies exhibiting a shared vision of providing
excellent customer service and maintaining strong local community
connections."
Hog generated annual revenues of approximately $65 million in 2024, with aftermarket parts and
services representing approximately 35% of total revenues.
The transaction closed on February 12,
2025. The Company expects the acquisition to be accretive to
earnings and cash flow in 2025. Management will issue its 2025
outlook, including the impact of Hog, later this month during its
fourth quarter 2024 earnings call.
About Federal Signal
Federal
Signal Corporation (NYSE: FSS) builds and delivers equipment of
unmatched quality that moves material, cleans infrastructure, and
protects the communities where we work and live. Founded in 1901,
Federal Signal is a leading global designer, manufacturer, and
supplier of products and total solutions that serve municipal,
governmental, industrial, and commercial customers. Headquartered
in Downers Grove, Ill., with
manufacturing facilities worldwide, the Company operates two
groups: Environmental Solutions and Safety and Security
Systems. For more information on Federal Signal, visit:
www.federalsignal.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
This release contains various forward-looking statements as of
the date hereof and we undertake no obligation to update these
forward-looking statements regardless of new developments or
otherwise. Statements in this release that are not historical are
forward-looking statements. Such statements are subject to various
risks and uncertainties that could cause actual results to vary
materially from those stated. Such risks and uncertainties include
but are not limited to: economic and political uncertainty, risks
and adverse economic effects associated with geopolitical
conflicts, legal and regulatory developments, foreign currency
exchange rate changes, inflationary pressures, product and price
competition, supply chain disruptions, availability and pricing of
raw materials, interest rate changes, risks associated with
acquisitions such as integration of operations and achieving
anticipated revenue and cost benefits, work stoppages, increases in
pension funding requirements, cybersecurity risks, increased legal
expenses and litigation results and other risks and uncertainties
described in filings with the Securities and Exchange
Commission.
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SOURCE Federal Signal Corporation
