Federal Signal to buy New Way Trucks for $396 million, plus $30 million for facilities
Federal Signal Corporation agreed on September 24, 2025 to acquire Scranton Manufacturing Company Inc., doing business as New Way Trucks, a U.S. maker of refuse collection vehicles. The initial price is $396 million on a cash-free, debt-free basis, plus $30 million for New Way's Iowa and Mississippi facilities and up to $54 million in earn-out payments over two years. The company expects the deal to be neutral to earnings per share in 2026 and accretive by $0.40 to $0.45 per share in 2028, and it expects to close in the fourth quarter of 2025 subject to regulatory approval.
Key points
- Initial consideration of $396 million for New Way, plus $30 million for its manufacturing facilities and real estate rights in Iowa and Mississippi
- Contingent earn-out of up to $54 million based on specified financial targets over a two-year period
- Company expects the deal to be neutral to 2026 EPS and accretive by $0.40 to $0.45 per share in 2028, with $15 million to $20 million in annual run-rate synergies
- Financing will come from cash on hand and availability under the credit facility; closing is expected in the fourth quarter of 2025
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 12:57 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on September 25, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.