Sale includes helmet, body armor and flat armor products
ST. PAUL, Minn.--(BUSINESS WIRE)--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.
3M Media Contact: Stephen Sanchez, 651-737-5967 3M Investor Contacts: Bruce Jermeland, 651-733-1807 Tony Riter, 651-733-1141
