ST. PAUL, Minn.--(BUSINESS WIRE)--
3M today announced that it has entered into agreements related to the
sale of substantially all of its Communication Markets Division to
Corning Incorporated, for $900 million, subject to closing and other
adjustments.
This business consists of optical fiber and copper passive connectivity
solutions for the telecommunications industry including 3M’s xDSL, FTTx,
and structured cabling solutions and, in certain countries,
telecommunications system integration services. This business has annual
global sales of approximately $400 million.
“After completing a thorough strategic review, we believe that this
business will be well positioned with Corning,” said Ashish Khandpur,
executive vice president, Electronics & Energy Business Group. “I want
to thank our Communication Markets Division team for their outstanding
contributions.”
The sale, which is subject to consultation or information requirements
with relevant works councils and to customary closing conditions and
regulatory approvals, is expected to be completed in 2018. Approximately
500 3M employees are expected to join Corning upon completion of the
transaction.
3M expects to realize a gain of approximately $0.40 per share from this
transaction, net of actions related to the divestiture.
Goldman Sachs & Co. LLC acted as the exclusive 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, 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 @3MNews.
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Source: 3M