Flexible Electronics News

Federal Signal Completes Sale of Federal Signal Technologies Group to 3M for $110 Million

Company will immediately repay $75 million of outstanding debt

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By: DAVID SAVASTANO

Contributing Editor, Coatings World and Ink World

Federal Signal Corporation announced that it has completed the sale of its Federal Signal Technologies Group (FSTech) business to 3M Company for $110 million in cash. The company will immediately repay $75 million of outstanding debt with proceeds from the transaction.

“I would like to thank all of the talented employees of FSTech for their innovative contributions and leadership in the intelligent transportation industry,” Dennis Martin, Federal Signal’s president and CEO, said. “I am confident that the partnership between FSTech and 3M will be a mutually rewarding one.”

As for the impact of the sale on Federal Signal, Martin stated, “The timing of the transaction provides us with a valuable opportunity to prepay debt at par, and to refinance the balance of remaining indebtedness in February of 2013. In addition to positively transforming our balance sheet, the sale will allow us to concentrate our focus on profitable growth in our core businesses of industrial and municipal equipment and safety and security solutions.”

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