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
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
3M expects the earnings impact from the transaction to be offset by
additional portfolio management actions in the fourth quarter of 2015.
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," "aim," "project," "intend," "plan,"
"believe," "will," "should," "could," "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)
unanticipated problems or delays with the phased implementation of a
global enterprise resource planning (ERP) system, or 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, 2014, 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.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151006006451/en/
Copyright Business Wire 2015