3M to Sell its Advanced Ballistic-Protection Business
07 Août 2019 - 8:00AM
Business Wire
Sale includes helmet, body armor and flat armor
products
3M today announced that it has entered into an agreement with
Avon Rubber p.l.c. to purchase 3M’s advanced ballistic-protection
business for $91 million, subject to closing and other adjustments.
A further contingent consideration of up to $25 million is payable
depending on the outcome of pending tenders. Avon Rubber is a
provider of advanced chemical, biological, radiological and nuclear
respiratory protection systems for military, law enforcement and
fire customers. 3M’s ballistic-protection business is part of its
advanced materials business.
As a part of ongoing portfolio management, 3M has decided to
sell this business and focus on other businesses within its
Advanced Materials Division. The ballistic-protection business
consists of ballistic helmets, body armor, flat armor and related
helmet-attachment products serving government and law enforcement.
It has annual global sales of approximately $85 million.
“I would like to extend my sincere appreciation to every member
of the team for their hard work and dedication to this business,”
said Tim Koenig, vice president and general manager, 3M Advanced
Materials Division. “Through their efforts, this business is well
known as a trusted leader in the industry and we believe Avon
Rubber is a very good fit to carry it forward.”
The Advanced Materials Division, a part of the Transportation
& Electronics Business Group, remains focused on serving its
customers with innovative, value-creating materials including
fluoropolymers, ceramics, glass bubbles and other highly engineered
materials and products.
The transaction, which is subject to customary closing
conditions and regulatory approvals, is expected to be completed in
late 2019 or early 2020. Approximately 280 3M employees, who
primarily support the business, are expected to join Avon Rubber as
a result of the sale.
3M expects the earnings per share impact of this divestiture to
be neutral.
William Blair acted as financial advisor to 3M.
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,” “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, political,
regulatory, capital markets and other external conditions and other
factors beyond the Company’s control, including natural and other
disasters or climate change 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)
operational execution, including scenarios where the Company
generates 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; (10) financial market risks that may
affect the Company’s funding obligations under defined benefit
pension and postretirement plans; and (11) 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 Dec. 31, 2018, and any 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 Reports). 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 3M
At 3M, we apply science in collaborative ways to improve lives
daily. With $33 billion in sales, our 93,000 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 @3MNews.
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version on businesswire.com: https://www.businesswire.com/news/home/20190806006045/en/
3M Media Contact: Stephen Sanchez, 651-737-5967
3M Investor Contacts: Bruce Jermeland, 651-733-1807 Tony
Riter, 651-733-1141
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