3M Adds To Safety Business With Deal -- WSJ
March 17 2017 - 3:02AM
Dow Jones News
By Austen Hufford
3M Co. is buying a personal-safety unit from Johnson Controls
Inc. for about $2 billion, the companies said Thursday.
The unit, Scott Safety, makes respiratory protection, gas and
flame detection, thermal imaging and other products for fire and
police departments and customers in industrial, oil and gas,
chemical, military and homeland defense segments.
Scott Safety is based in Monroe, N.C., and has about 1,500
employees globally. The business reported 2016 revenue of about
$570 million.
Johnson Controls, which expects to collect between $1.8 billion
and $1.9 billion in cash, said the sale helps it focus on its two
core businesses, buildings and energy. The company will use the
money to pay down part of $4 billion in debt resulting from its
September merger with Tyco International PLC.
3M said the unit will complement its personal-safety portfolio,
which is considered a core growth business.
The deal is expected to close in the second half of 2017 and 3M
estimates the deal will hurt earnings per share by 10 cents in the
year following the deal's close. Excluding accounting adjustments
and one-time expenses, 3M expects the deal to add 10 cents to
earnings over the same period.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
March 17, 2017 02:47 ET (06:47 GMT)
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