The McLaughlin family has signed a definitive agreement to sell Scranton Manufacturing, which operates under the New Way Trucks brand, to Federal Signal.

After more than 50 years in operation, the central Iowa-based business — a privately held refuse equipment manufacturer — will become part of Federal Signal’s specialty vehicle portfolio. The deal is expected to close before the end of the year, subject to regulatory approval and customary closing conditions.

Founded in Scranton, Iowa, in 1971, the company originally built farm equipment before acquiring New Way Trucks in 1984 and pivoting to refuse vehicles. Today, it employs more than 750 people across five factories in Iowa and Mississippi.

“This is not a decision we made lightly,” said Mike McLaughlin, CEO, in a news release. “As 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.”

Federal Signal president and CEO Jennifer Sherman said that the deal expands the company’s presence in the “recession-resilient” waste and recycling industry. “We see significant opportunities to capture synergies and accelerate New Way’s growth and margin trajectory in [the]coming years,” she said.

McLaughlin added that the acquisition ensures stability and opportunity for the company’s workforce. “It 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,” he said.