Federal Signal Corp. (FSS: Quote) has reached a definitive agreement to sell its Federal Signal Technologies LLC or "FSTech" business to 3M Co. (MMM: Quote) for $110 million cash, subject to post-closing adjustments. The transaction may be complete in the second half of 2012.
Dennis Martin, Federal Signal's president and chief executive noted, "I believe this transaction will benefit Federal Signal in two important ways: first, it will enable us to transform our balance sheet, and second, 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. "
Federal Signal plans to use the proceeds from the transaction mainly to reduce debt. Jefferies & Co., Inc. advised Federal Signal on the transaction, and Thompson Coburn LLP served as Federal Signal's legal counsel.
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by RTT Staff Writer
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