ST. PAUL, Minn.--(BUSINESS WIRE)--3M announced today that it has entered into an agreement to acquire the
business of Federal Signal Technologies Group (FSTech) from Federal
Signal Corp., for a purchase price of $110 million in cash, subject to
post-closing adjustments. FSTech focuses on electronic toll collection
and parking management hardware and software services.
The fast-growing $3 billion electronic tolling industry is projected to
grow at a rate greater than 12 percent per year as government agencies
increasingly rely on tolling to fund roadway infrastructure,
construction and maintenance. FSTech’s solutions for electronic tolling,
vehicle identification and classification, toll management software,
license plate recognition, and parking lot fare collection systems,
combined with 3M’s traffic management solutions, will advance the
tolling and parking industry enabling seamless fare collection wherever
motorists drive.
“Electronic tolling and parking are key adjacencies to 3M’s offering for
motor vehicle systems and services,” said John Houle, vice president and
general manager, 3M Traffic Safety Systems Division. “FSTech will
complement 3M’s offerings for the Department of Transportation, the
Department of Motor Vehicles, toll authorities, and law enforcement
agencies, and expand on our core traffic products for motor vehicles and
roadways, and license plate validation materials.”
For more than 70 years 3M has delivered traffic products, systems and
services for transportation safety, traffic management, vehicle
registration and commercial transportation markets. FSTech’s
technologies come from its five business units: IDRIS – vehicle
detection and classification solution; PIPS – fixed and mobile automatic
license plate reading hardware and software; Federal APD – parking
management and fare collection solutions; Sirit – active and passive
RFID transponders and readers; and VESystems – toll account management
and violation processing software and services.
“3M’s expertise and innovation in the traffic industry make it a natural
choice to continue to build this important business for our customers
and for drivers everywhere,” said Dan McGurran, director, 3M Motor
Vehicle Systems and Services.
On a GAAP reported basis, 3M estimates the acquisition to be $0.02
dilutive to earnings in the first 12 months following completion of the
transaction. Excluding purchase accounting adjustments and anticipated
integration expenses, 3M estimates the acquisition to be neutral to
earnings over the same period.
FSTech employs approximately 500 people and has primary facilities in
Arizona, California, Illinois, Michigan, Missouri, North Carolina,
Tennessee, Texas, Hong Kong, Dubai and the U.K. The transaction is
expected to be completed in the second half of 2012, subject to
customary approvals and closing conditions.
Forward-Looking Statements
This news release contains forward-looking information about 3M’s
financial results and estimates and business prospects that involve
substantial risks and uncertainties. You can identify these statements
by the use of words such as “anticipate,” “estimate,” “expect,”
“project,” “intend,” “plan,” “believe,” “will,” “target,” “forecast” and
other words and terms of similar meaning in connection with any
discussion of future operating or financial performance or business
plans or prospects. Among the factors that could cause actual results to
differ materially are the following: (1) worldwide economic and capital
markets conditions and other factors beyond the Company’s control,
including natural and other disasters affecting the operations of the
Company or its customers and suppliers; (2) the Company’s credit ratings
and its cost of capital; (3) competitive conditions and customer
preferences; (4) foreign currency exchange rates and fluctuations in
those rates; (5) the timing and market acceptance of new product
offerings; (6) the availability and cost of purchased components,
compounds, raw materials and energy (including oil and natural gas and
their derivatives) due to shortages, increased demand or supply
interruptions (including those caused by natural and other disasters and
other events); (7) the impact of acquisitions, strategic alliances,
divestitures, and other unusual events resulting from portfolio
management actions and other evolving business strategies, and possible
organizational restructuring; (8) generating fewer productivity
improvements than estimated; (9) security breaches and other disruptions
to the Company’s information technology infrastructure; and (10) legal
proceedings, including significant developments that could occur in the
legal and regulatory proceedings described in the company’s Annual
Report on Form 10-K for the year ended December 31, 2011 and its
subsequent quarterly reports on Form 10-Q (the "Reports"). Changes in
such assumptions or factors could produce significantly different
results. A further description of these factors is located in the
Reports under “Cautionary Note Concerning Factors That May Affect Future
Results” and “Risk Factors” in Part I, Items 1 and 1A (Annual Report)
and in Part I, Item 2 and Part II, Item 1A (Quarterly Report). The
information contained in this news release is as of the date indicated.
The company assumes no obligation to update any forward-looking
statements contained in this news release as a result of new information
or future events or developments.
About Federal Signal
Federal Signal Technologies Group is a division of Federal Signal Corp.
(NYSE: FSS). Federal Signal Corp. enhances the safety, security and
well-being of communities and workplaces around the world. Founded in
1901, Federal Signal is a leading global designer and manufacturer of
products and total solutions that serve municipal, governmental,
industrial and transportation customers and markets. Headquartered in
Oak Brook, IL, with manufacturing facilities worldwide, the company
operates four groups: Safety and Security Systems, Environmental
Solutions, Fire Rescue, and Federal Signal Technologies. For more
information on Federal Signal, please visit: www.federalsignal.com.
About 3M
3M captures the spark of new ideas and transforms them into thousands of
ingenious products. Our culture of creative collaboration inspires a
never-ending stream of powerful technologies that make life better. 3M
is the innovation company that never stops inventing. With $30 billion
in sales, 3M employs 84,000 people worldwide and has operations in more
than 65 countries. For more information, visit www.3M.com
or follow @3MNews on Twitter.
