, /PRNewswire/ -- (NYSE: FSS) today announced that it has signed a definitive agreement to sell its ("FSTech") business to (NYSE: MMM) for in cash, subject to post-closing adjustments. The transaction is subject to closing conditions and regulatory approvals, and is expected to be completed in the second half of 2012.
(Logo: https://photos.prnewswire.com/prnh/20120420/CG91760LOGO)
"The sale of our FSTech business to presents the best opportunity to maximize FSTech's value for shareholders, and complements 's global portfolio," said , 's president and chief executive officer. "I believe this transaction will benefit 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. 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. FSTech's hardware and software products are used in electronic tolling, parking and access control, law enforcement, and many other innovative applications such as electronic vehicle registration.
intends to use the proceeds from the transaction primarily to reduce debt. advised on the transaction, and served as 's legal counsel.
will host an investor conference call as a follow up to this announcement at , with , president and CEO, , senior vice president and CFO, and , CAO, senior vice president, general counsel and secretary.
Investors and analysts may access the webcast at https://www.federalsignal.com. An archived replay of the investor conference call will be available on the company's website shortly after the call concludes.