Acquisition Overview - Federal Signal is acquiring New Way Trucks for an initial consideration of $396 million, plus $30 million for manufacturing facilities, on a cash-free, debt-free basis[12] - The purchase price represents a multiple of approximately ~11x New Way's projected 2026 EBITDA and ~7x New Way's projected 2028 EBITDA, inclusive of expected synergies[12] - The transaction includes a contingent earn-out opportunity of up to $54 million based on achieving certain financial targets over two years[12] New Way Trucks Financial Highlights - New Way's 2024 revenue was approximately $249 million[5] - New Way's 2024 adjusted EBITDA was approximately $36 million[5] - New Way has experienced double-digit % long-term revenue CAGR from 2015-2024[5] - Approximately 45% of New Way's revenue in 2024 came from municipalities[5] Synergies and Financial Impact - The transaction is expected to be neutral to 2026 EPS and accretive in subsequent years, with anticipated EPS accretion of between $0.40 and $0.45 in 2028[12] - Annual run-rate synergies of between $15 million and $20 million are expected to be substantially realized by the end of 2028[12, 25] - Federal Signal expects EBITDA margins to be within the Environmental Solutions Group's 18-24% target range longer term[12] Market Position - New Way holds the 1 position in U S automated side loaders[5, 11, 23] - Side Loaders as a Percent of Total Industry Refuse Collection Vehicles Sold increased from ~29% in 2019 to ~37% in 2024[22]