ST. PAUL, Minn.--(BUSINESS WIRE)--
3M announced today that it has entered into an agreement to sell its
electronic monitoring business to an affiliate of Apax Partners, a
leading global private equity advisory firm, for $200 million, subject
to closing and other adjustments.
3M’s business, with annual sales of approximately $95 million, is a
provider of electronic monitoring technologies, serving hundreds of
correctional and law enforcement agencies around the world.
“This divestiture is one of several actions we have taken to improve our
portfolio,” said John Riccardi, vice president and general manager,
Transportation Safety Division. “We are focusing on the rapidly changing
trends in transportation safety and mobility, which include the
connected roadways of the future.”
For almost 80 years, 3M has pioneered industry-leading solutions to
improve road safety and mobility. The Transportation Safety Division,
formerly known as the Traffic Safety and Security Division, supplies
materials and solutions including retroreflective sign sheeting,
pavement marking, temporary traffic control, vehicle registration and
conspicuity.
Approximately 265 3M employees who support the electronic monitoring
business are expected to transfer in connection with the sale.
The transaction is expected to close in the third quarter of 2017,
subject to customary closing conditions, regulatory approvals and
consultation or information requirements with relevant works councils.
Upon completion of this transaction, 3M expects to record a gain of
approximately $0.15 per share from this divestiture.
Wells Fargo Securities, LLC, acted as the exclusive financial adviser to
3M on the sale.
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, and
capital markets 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)
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; (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, 2016, 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 $30 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.
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Source: 3M