Last week, Chicagoland-based Federal Signal Corp. announced it would be purchasing Scranton Manufacturing Co., d.b.a. New Way Trucks, for $396 million. Federal Signal is one of the world’s largest manufacturers of lights, sirens, and communication systems for first responders and heavy equipment. Federal Signal was founded in 1901 as an electric sign manufacturer. Federal Signal went public in 1961 and expanded into street sweepers in the 1980s, followed by vacuum trucks, industrial cleaning equipment, and hydroexcavators in the 1990s. Federal Signal’s growth exploded in 2016 after its current CEO, Jennifer Sherman, was chosen to lead the company, who oversaw Federal Signal’s acquisition of more than a dozen industrial manufacturing companies in under a decade. The decision to sell New Way Trucks did not come lightly to the McLaughlin family, who have owned the company since its founding in 1971. CEO Mike McLaughlin says, “As family-owned operations, we think of New Way Trucks and all our companies as family, as part of us. We want the best and continued success for each of them…We believe that Federal Signal can further invest in New Way Trucks and can best help take New Way to the next level as the top refuse collection equipment manufacturer in the waste and recycling industry.” McLaughlin says they spent months searching for and interviewing potential buyers, but they kept coming back to Federal Signal. He says, “Federal Signal shares our values and vision for the future. They are committed to honoring the McLaughlin Family Companies’ legacy and what we have built. And they recognize the strength and talent of our employees and the culture of family and small-town values that are at our core.” He expects the ownership transition to Federal Signal to be seamless, and all New Way employees will stay with the company. New Way Trucks, which falls under the McLauglin Family Companies banner, is the only one of the nine companies being purchased by Federal Signal. McLauglin says operations for those other brands will not be impacted by the sale and will continue as normal. The acquisition is expected to be finalized by the end of 2025, pending regulatory approval.
