The McLaughlin family announced that it has signed a definitive agreement to sell Scranton Manufacturing Company Inc. d/b/a New Way Trucks and the New Way Trucks brand. After more than half a century, the privately held, central Iowa-based company will now become part of Federal Signal Corporation. Scranton Manufacturing and its New Way Trucks brand represent the largest privately held manufacturer of refuse equipment in North America.
The company has operated in Scranton, Iowa since 1971, originally manufacturing agricultural equipment for local farmers. In 1984, the company transitioned to manufacturing refuse equipment with the acquisition of Des Moines, Iowa-based New Way Trucks. Since 1984, the company has grown to more than 750 employees across five factories in two states, with operations in Scranton and Carroll, Iowa and Booneville, Mississippi.
鈥淭his is not a decision we made lightly, said Mike McLaughlin, Chief Executive Officer. 鈥淎s a family-owned business, this company has been part of our lives for nearly three generations. It has grown thanks to the hard work and dedication of our employees, distributors and partners, and their belief in what we do. They are the heart of this company, and we are deeply grateful for everything they have contributed. Together, we have built this company to be the largest privately held manufacturer of refuse equipment in North America.鈥�
The acquisition will allow New Way to strengthen its position as an equipment manufacturer in the North American solid waste, recycling, and environmental services industry. Already a prominent manufacturer in the refuse space, New Way鈥檚 continued growth will be buoyed by the global resources of Federal Signal, as they broaden their footprint in the environmental services space.
鈥淲e are excited to join the Federal Signal family and add New Way to their portfolio,鈥� continued McLaughlin. 鈥淚t has always been important to my family that we provide for our employees, and partnering with Federal Signal allows for the very best opportunities for the entire New Way employee family. Our company鈥檚 culture has always been important to the success of the business and aligns perfectly with Federal Signal鈥檚 culture of growth, innovation, and teamwork.鈥�
鈥淭he 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,鈥� said Jennifer L. Sherman, President and Chief Executive Officer of Federal Signal. 鈥淲ith 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鈥檚 growth and margin trajectory in coming years. Importantly, we believe New Way鈥檚 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鈥檚 dedicated team of more than 750 employees to the Federal Signal family.鈥�