3M to Sell Substantially All of Its Communication Markets Division
December 11 2017 - 8:50AM
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 StatementsThis 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 3MAt 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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version on businesswire.com: http://www.businesswire.com/news/home/20171211005575/en/
3MMedia Contact:Lori Anderson,
651-733-0831orInvestor Contacts:Bruce Jermeland,
651-733-1807orTony Riter, 651-733-1141
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