3M today announced that 3M France has received a binding offer from Hills Numberplates Limited to purchase 100 percent of the shares of Faab Fabricauto, a wholly-owned subsidiary of 3M and part of 3M’s Traffic Safety and Security Division. Faab Fabricauto is a leading French manufacturer of license plates and signage solutions, with facilities in Bourg-en-Bresse and Mâcon.
Faab Fabricauto has a 50-year history in the vehicle identification solutions industry, with a focus in license-plate manufacturing. The company also provides serigraphy and number-printing services for automotive, graphic communications, signage and industrial sectors. Faab Fabricauto has annual sales of approximately $30 million.
“As a part of our portfolio management process, we intend to sell the Faab Fabricauto business and focus on our core businesses, including reflective traffic safety and vehicle identification solutions and public security identification and monitoring portfolio,” said John Riccardi, vice president and general manager, 3M Traffic Safety and Security Division.
3M invented reflective sheeting for use on vehicles and road signs and is a long-time supplier of printed, reflective license plate films. “Reflective sheeting remains an important component in 3M’s portfolio, and we continue our investments in advanced retroreflective technology to improve the performance, durability, and visibility of license plates around the world,” Riccardi said.
“Hills has a long-held desire for international growth within its numberplate division and the offer to purchase Faab Fabricauto makes this ambition a reality. Hills is excited by the chance to build on the strong foundations set by Faab Fabricauto and to continue the program of continuous development in both the French and UK marketplace,” said Richard Taffinder, managing director, Hills.
“Hills has a tradition of innovation and has been servicing the UK market since 1927, hence the opportunity to expand into France and work alongside 3M as our dedicated materials supplier is very attractive. Not only will it deliver a formidable platform for success but generate a combined output by Hills group in excess of 19 million plates per annum,” Taffinder continued.
The transaction is expected to be signed by 3M France and closed during the fourth quarter of 2015, subject to consultation requirements with the relevant French Works Councils. The approximately 150 employees of Faab Fabricauto are expected to transition with the business when the transaction closes.
3M expects the earnings impact from the transaction to be offset by additional portfolio management actions in the fourth quarter of 2015.
Forward-Looking Statements
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About 3M
At 3M, we apply science in collaborative ways to improve lives daily. With $32 billion in sales, our 90,000 employees connect with customers all around the world. Learn more about 3M’s creative solutions to the world’s problems at www.3M.com or on Twitter @3M or @3MNewsroom.
About Hills Numberplates
Incorporated in 1927, Hills Numberplates trades primarily as a manufacturer of number plate components, ready-made registration plates and the latest number plate manufacturing systems. It is the market leader in the UK with a growing portfolio of international trade and has consistently developed its capabilities to provide customers with high quality services and products while continuing to invest in the future.
Media Contacts:3MDonna Fleming Runyon, 651-736-7646orHills NumberplatesRichard Taffinder, +44 (0) 121 623 8120orInvestor Contacts:3MBruce Jermeland, 651-733-1807orMike Kronebusch, 651-733-1141
