Business
Federal Signal to Acquire New Way Trucks; Expand Specialty Vehicle Platform into Refuse Collection Vehicles
Federal Signal Corporation (NYSE: FSS) ("Federal Signal" or the "Company"), a leader in environmental and safety solutions, today announced that it has signed a definitive agreement to acquire Scranton Manufacturing Company Inc. d/b/a New Way Trucks ("New Way"), a leading U.S.-based designer and manufacturer of refuse collection vehicles, for an initial purchase price of $396 million. As part of the acquisition, the Company will also pay additional consideration of $30 million for New Way's manu
About this update from Federal Signal Corporation
[{"type":"text","content":"DOWNERS GROVE, Ill., Sept. 24, 2025 /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS) ("Federal Signal" or the "Company"), a leader in environmental and safety solutions, today announced that it has signed a definitive agreement to acquire Scranton Manufacturing Company Inc. d/b/a New Way Trucks ("New Way"), a leading U.S.-based designer and manufacturer of refuse collection vehicles, for an initial purchase price of $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. The initial purchase price assumes a cash-free, debt-free transaction, and is subject to certain post-closing adjustments. In addition, there is a contingent earn-out opportunity of up to $54 million, based on the achievement of certain specified financial targets over a two-year period.","length":954,"tagName":"p"},{"type":"text","content":"When adjusted for the present value of anticipated tax benefits, currently estimated at approximately $60 million, the combined initial purchase price represents a multiple of approximately 11x New Way's projected 2026 EBITDA, reflecting the impact of various planned investments and integration and optimization initiatives, including deployment of Federal Signal's chassis and inventory management best practices, and a multiple of approximately 7x New Way's projected 2028 EBITDA, inclusive of expected synergies.","length":528,"tagName":"p"},{"type":"text","content":"The transaction will be financed with a combination of cash on hand and availability under Federal Signal's credit facility. The Company currently anticipates that its pro-forma net debt leverage ratio upon completion of the acquisition will be less than 1.5x.","length":264,"tagName":"p"},{"type":"text","content":"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 manufactur...