Federal Signal to buy New Way for $396M

Federal Signal Corporation has signed an Equity Purchase Agreement to acquire all outstanding equity of Scranton Manufacturing Company Inc. (New Way), a U.S.-based designer and manufacturer of refuse collection vehicles.

Rhea-AI Filing Summary

Federal Signal Corporation has signed an Equity Purchase Agreement to acquire all outstanding equity of Scranton Manufacturing Company Inc. (New Way), a U.S.-based designer and manufacturer of refuse collection vehicles.

The deal provides for initial consideration of $396 million for New Way, plus an additional $30 million for its manufacturing facilities and related real estate in Iowa and Mississippi. There is also a contingent earn-out of up to $54 million based on achieving specified financial targets over two years.

The agreement includes customary representations, warranties, covenants, termination rights and indemnification provisions, with recourse to a representation and warranty insurance policy. Closing is subject to customary conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act.

Insights

M&A and industrials analyst

Federal Signal signs a sizable, structured acquisition of refuse vehicle maker New Way.

Federal Signal Corporation is expanding in specialty vehicles by agreeing to buy New Way, a leading U.S. designer and manufacturer of refuse collection vehicles. The transaction structure combines an initial $396 million consideration for the business with $30 million tied to manufacturing facilities and real estate in Iowa and Mississippi.

The inclusion of an earn-out of up to $54 million over two years links part of the total consideration to New Way’s future financial performance. Customary representations, warranties and covenants, along with a representation and warranty insurance policy, help allocate post-closing risk between the parties in line with typical private M&A practice.

Completion is conditioned on antitrust clearance under the Hart-Scott-Rodino Act and other customary closing conditions. The company has also issued a press release and scheduled a conference call with investor presentation slides on September 25, 2025, which may provide further detail on strategic rationale, expected integration and financial impact once available.

8-K Event Classification

2 items: 1.01, 9.01

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What acquisition did Federal Signal Corporation (FSS) announce?

Federal Signal Corporation entered into an Equity Purchase Agreement to acquire all outstanding equity interests of Scranton Manufacturing Company Inc. (New Way), a U.S.-based designer and manufacturer of refuse collection vehicles.

How much is Federal Signal (FSS) paying to acquire New Way?

The agreement provides for initial consideration of $396 million to acquire New Way, plus an additional $30 million for New Way’s manufacturing facilities and associated real estate rights in Iowa and Mississippi.

Is there an earn-out component in the Federal Signal–New Way deal?

Yes. The transaction includes a contingent earn-out opportunity of up to $54 million, payable based on achievement of specified financial targets over a two-year period.

What conditions must be satisfied before Federal Signal’s acquisition of New Way can close?

Closing is subject to customary conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, along with other standard closing conditions outlined in the purchase agreement.

Does the Federal Signal–New Way purchase agreement include indemnification protections?

Yes. The purchase agreement contains customary indemnification provisions subject to specified limitations, including recourse to a representation and warranty insurance policy purchased by Federal Signal for certain losses.

How is Federal Signal communicating details of the New Way acquisition to investors?

Federal Signal issued a press release announcing the execution of the purchase agreement and will host a conference call on September 25, 2025, with accompanying investor presentation slides posted on its website.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 09/25/2025 - 07:06 AM Learn about SEC filing dates

0000277509False00002775092025-09-242025-09-24

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 8-K

___________________________________ 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 24, 2025

___________________________________

Federal Signal Corporation

(Exact name of registrant as specified in its charter)

___________________________________

Delaware

001-6003

36-1063330

(State or other jurisdiction  of incorporation)

(Commission File  Number)

(IRS Employer  Identification No.)

1333 Butterfield Road, Downers Grove, Illinois

(Address of principal executive offices)

60515

(Zip Code)

(630) 954-2000

(Registrant’s telephone number, including area code)

___________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, par value $1.00 per share			FSS			New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o   

Item 1.01    Entry into a Material Definitive Agreement.

On September 24, 2025, Federal Signal Corporation, a Delaware corporation (the “Company”), entered into an Equity Purchase Agreement (the “Purchase Agreement”) with McLaughlin Family Companies Inc., an Iowa corporation, and Scranton Manufacturing Company Inc., an Iowa corporation (“New Way”). Pursuant to, and subject to the terms and conditions of, the Purchase Agreement, the Company will acquire all of the outstanding equity interests of New Way. New Way is a leading U.S.-based designer and manufacturer of refuse collection vehicles.

The Purchase Agreement provides for initial consideration of $396 million to acquire New Way. 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.

The Purchase Agreement includes customary representations, warranties, and covenants by the parties and customary termination rights for the parties. The Purchase Agreement contains indemnification provisions that are subject to specified limitations, including recourse to a representation and warranty insurance policy purchased by the Company for certain losses. The acquisition is subject to customary conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which is attached hereto as Exhibit 10.1 (excluding schedules and exhibits, which the Company agrees to furnish supplementally to the Securities and Exchange Commission upon request).

A copy of the press release issued by the Company on September 24, 2025 announcing the execution of the Purchase Agreement is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The Company will also host a conference call to discuss the transaction on September 25, 2025. The presentation slides for the conference call will also be posted on the Company’s website at that time. The presentation slides are furnished herewith as Exhibit 99.2.

Item 9.01    Financial Statements and Exhibits.

(d)			Exhibits
			10.1			Equity Purchase Agreement, dated as of September 24, 2025, by and among Federal Signal Corporation, Scranton Manufacturing Company Inc. and McLaughlin Family Companies Inc.
			99.1			Federal Signal Corporation Press Release, dated September 24, 2025
			99.2			Federal Signal Corporation Investor Presentation Slides, dated September 25, 2025
			104			Cover Page Interactive Data File (embedded within the Inline XBRL Document)

 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			FEDERAL SIGNAL CORPORATION
Dated: September 25, 2025			By:			/s/ Ian A. Hudson
						Ian A. Hudson, Senior Vice President and Chief Financial Officer