Federal Signal Corporation completed the acquisition of substantially all the assets and operations of Waterblasting, LLC, owner of Hog Technologies, on February 12, 2025. Hog Technologies is a leading U.S. manufacturer of truck-mounted road-marking, line-removal, and waterblasting equipment, serving infrastructure, municipal, and airport markets.
The initial purchase price for the acquisition was $78.1 million, funded through existing cash on hand and borrowings under the company's revolving credit facility. There is also a contingent earn-out opportunity of up to $15 million, based on the achievement of specified financial targets during 2025. Additionally, Federal Signal entered into a definitive agreement to acquire Hog's primary manufacturing facility for $14.5 million.
Hog generated approximately $65 million in annual revenues in 2024, with aftermarket parts and services representing about 35% of total revenues. This acquisition aligns with Federal Signal's strategic priorities to grow its specialty vehicle platform and strengthens its leadership in the infrastructure maintenance sector. The company expects the acquisition to be accretive to earnings and cash flow in 2025, broadening product offerings and unlocking future growth opportunities, particularly in international and airport markets.
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