ST. PAUL, Minn.--(BUSINESS WIRE)--3M announced today that it has completed its acquisition of Capital
Safety from KKR for a total enterprise value of $2.5 billion, including
the assumption of approximately $0.7 billion of debt, net of cash
acquired. Capital Safety is a leading global provider of fall protection
equipment, one of the fastest-growing safety categories within the
global personal protective equipment industry.
3M’s Personal Safety business provides respiratory and hearing
protection solutions that help improve the safety and security of
workers. The business also supplies products and solutions in other
safety categories such as reflective materials for high-visibility
apparel, protective clothing and eyewear, among others.
Capital Safety’s industry-leading products and solutions include
harnesses, lanyards, self-retracting lifelines and engineered systems.
The business has annual global sales of approximately $430 million.
The addition of Capital Safety bolsters 3M’s personal safety platform to
meet the growing demand for personal protective equipment driven by
increasing regulatory focus on worker safety across both developed and
developing countries. 3M’s global capability combined with Capital
Safety’s products will enable 3M to bring a broader array of personal
protective equipment products and solutions to more customers worldwide.
On a GAAP reported basis, 3M estimates the Capital Safety acquisition to
be $0.04 per share dilutive to 2015 earnings, all of which will be
incurred in the third quarter.
3M’s 2015 earnings guidance of $7.80 to $8.00, announced on July 23,
2015, excluded the estimated impact from its pending acquisitions of
Capital Safety and Polypore’s Separations Media business at that time.
The acquisition of the Polypore Separations Media business is still
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.
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.