Federal Signal Corporation up 19% After Selling FSTech to 3M

Federal Signal Corporation

is trading higher on the session following th announcement that the company will sell its Federal Signal Technologies to 3M

. The purchase price is $110 million in cash and the transaction is expected to close in the second half of 2012. Dennis Martin, Federal Signal's president and chief executive officer said, "The sale of our FSTech business to 3M presents the best opportunity to maximize FSTech's value for Federal Signal shareholders, and complements 3M's global portfolio. 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. 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." Federal Signal Corporation is currently trading at $5.65, a gain of $0.91 or 19.20%.