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3M to Buy Federal Signal ITS Unit for $110M in Cash (6/21/12)
Federal Signal agreed to sell its Federal Signal Technologies (FSTech) business to 3M for $110 million in cash, subject to post-closing adjustments. The transaction is expected to be completed in the second half of 2012.
"I believe this transaction will benefit Federal Signal in two important ways: First, it will enable us to transform our balance sheet, and it will allow us to bring more focus to driving profitable growth in our core businesses of industrial and municipal equipment and safety and security solutions," said Dennis Martin, Federal Signal's president and CEO. “We plan to intensify our commitment to new product development and excellence in customer service, and to expand certain businesses in response to the increasing global market demand for improved security and warning systems."
The FSTech business focuses on intelligent transportation solutions (ITS). FSTech's hardware and software products are used in electronic tolling, parking and access control, law enforcement and other applications such as electronic vehicle registration.
Federal Signal intends to use the proceeds from the transaction primarily to reduce debt.
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