Oshkosh Truck Corporation (NYSE: OSK), which develops specialty vehicles for military and other commercial purposes, is hedging its future. To this end, the company is writing a check for $3.2 billion to buy out JLG Industries Inc. (NYSE: JLG), which develops aerial work platforms and telehandlers (basically, the equipment helps workers access machinery for construction and maintenance work).

During the past year, JLG posted about $2.3 billion in revenues. In fact, the company is growing at a rapid clip of 20% to 25% per year and is a market leader in North America and Europe.

The deal looks good for shareholders of JLG. The $28 offer represents a healthy 35% premium from the stock's closing price of $20.75 on Friday. Although, it is still below the company's 52-week high of $32.49.

For Oshkosh Truck, the deal looks good too. That is, JLG's addressable market – i.e., nonresidential construction – looks particularly bright on a global, long-term basis.

While Oshkosh Truck has made a variety of acquisitions over the years, the deal for JLG will certainly move the needle. The combined company will have $6 billion in revenues and 13,000 employees. What's more, there should be lots of cost synergies.

Back in the mid 1990s, Oshkosh Truck was in shambles because of the end of the Cold War. In other words, the company doesn't want to be too dependent on military spending – and it looks like JLG is a smart choice.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.