Federal Signal Announces Sale of European Sweeper Business
OAK BROOK, Ill., July 16 -- Federal Signal Corporation (NYSE:FSS), a leader in advancing security and well-being, today announced it has completed the sale of Ravo Holding B.V., a manufacturer of compact street sweepers located in the Netherlands, to Fayat Group, a leader in Europe in the Roadbuilding equipment sector as well as in the Building and Public Works industry, headquartered in France. The selling price was approximately $12 million (EUR 8.5 million).
The company intends to use the sales proceeds to pay down debt and fund its core operations. The company will recognize a non-cash loss on the sale in the second quarter, but does not expect the transaction to have a material impact on the company's forecasted earnings for the second half of the year.
William Osborne, CEO of Federal Signal, stated, "We are pleased to have completed the sale of the Ravo sweeper business to Fayat Group. We believe Ravo is a good strategic fit for the Fayat Environmental business line, and thank the Ravo employees for many years of valued service."
Osborne continued, "The sale of Ravo is consistent with our strategy to streamline our operations and focus our business portfolio, and the proceeds from the transaction will provide us with more financial flexibility. Although the divestiture marks our exit from the European street sweeper business, Federal Signal remains committed to leveraging and growing the leadership position of our Elgin Sweeper business in North American and other select global markets."
About Federal Signal
Federal Signal Corporation (NYSE:FSS) 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 institutional customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates three groups: Safety and Security Systems, Environmental Solutions and Fire Rescue. For more information on Federal Signal, visit: http://www.federalsignal.com/.
Source: Federal Signal Corporation
CONTACT:
investors,
William Barker of Federal Signal Corporation,
+1-630-954-2000,
wbarker@federalsignal.com; or
Corinne Beaujean of Fayat,
+33 556 00 21 00,
c.beaujean@fayat.com
Web Site: http://www.federalsignal.com/
