Federal Signal Corporation (NYSE: FSS), a leader in environmental and safety solutions headquartered in Downers Grove, IL, announced Sept. 25 that it has signed a definitive agreement to acquire Scranton Manufacturing Company Inc. d/b/a New Way Trucks, a leading U.S.-based designer and manufacturer of refuse collection vehicles.
As a family-owned business, New Way has established itself as one of the fastest-growing refuse truck manufacturers in North America through its strong reputation for quality, reliability, and customer service. New Way manufactures a full range of automated side loaders, rear loaders, and front loaders in its two primary U.S. production facilities, serving both municipal and private-hauler customers. New Way is also recognized as the leading manufacturer of automated side loaders in the U.S., one of the fastest growing waste-hauling product lines.
“The acquisition of New Way establishes a new vertical within our specialty vehicle portfolio and represents a meaningful expansion into the recession-resilient waste and recycling industry,” said Jennifer L. Sherman, president and chief executive officer of Federal Signal. “With our deep expertise in selling refuse equipment through our direct distribution channel and our ability to leverage the power of our specialty vehicle platform, we see significant opportunities to capture synergies and accelerate New Way’s growth and margin trajectory in coming years. Importantly, we believe New Way’s leading U.S. position in automated side loaders and for municipal sales sets the foundation for continued outperformance within the refuse space. We are excited to welcome New Way’s dedicated team of more than 750 employees to the Federal Signal family.”
“The opportunity to join Federal Signal marks an exciting new chapter for our company,” said Michael McLaughlin, chief executive officer of New Way. “As a family-owned company, we take great pride in our history of innovation, customer focus, and growth. Serving the local communities in which we operate and our commitment to employees are both of paramount importance to our company, and we believe that Federal Signal shares these values. They represent the right cultural fit to continue building on that legacy, while accelerating New Way’s growth prospects going forward.”
The Company anticipates completing the transaction during the fourth quarter of 2025, subject to regulatory approval and customary closing conditions. The initial purchase price is $396 million. As part of the acquisition, the Company will also pay additional consideration of $30 million for New Way’s manufacturing facilities and associated real estate rights in Iowa and Mississippi.
