Corning to Acquire Substantially All of 3M's Communication Markets Division
December 11 2017 - 8:50AM
Strengthens global market reach and expands high-bandwidth
portfolio
CORNING, N.Y.; DECEMBER 11, 2017 - Corning
Incorporated (NYSE: GLW) announced today that it has entered into
agreements with 3M to purchase substantially all of 3M's
Communication Markets Division in a cash transaction valued at
approximately $900 million. The acquisition is expected to close
during 2018, subject to customary closing conditions and regulatory
approval.
Corning's Optical Communications segment will
acquire approximately $400 million in annual sales of high
bandwidth and optical fiber products. The effective enterprise
value of the transaction is less than 7 times the Communication
Markets Division's estimated forward-annual adjusted EBITDA,
including expected run-rate synergies. Corning expects the
transaction to add $0.07-$0.09 to 2019 EPS.
"Corning leads in optical passive components and
solutions. This transaction expands both our global market reach
and our high-bandwidth portfolio. It also provides new
co-innovation opportunities and enhances our ability to serve
customers globally," said Clark S. Kinlin, executive vice
president, Corning Optical Communications. "As the industry's only
true end-to-end manufacturer and supplier of optical solutions, we
look forward to bringing these two strong organizations together
and welcoming a group of outstanding employees."
The pending acquisition is part of Corning's
multi-year Strategy and Capital Allocation Framework, which is
designed to create significant value for shareholders by focusing
the company's portfolio and utilizing its financial strength. A key
component of the Framework is the company's plan to invest
approximately $1 billion to $3 billion in acquisitions. When
complete, this acquisition will augment Corning's Optical
Communications global market access and expand its broad portfolio
of high-bandwidth optical connectors, assemblies, hardware, and
accessories for Carrier Networks, Enterprise LAN, and Data Center
solutions.
3M's Communication Markets Division is
headquartered in Austin, Texas, and has a dedicated manufacturing
facility in Pontchâteau, France, and operations in Hannover,
Germany. The acquisition is subject to consultation or information
requirements with relevant works councils, as well as customary
closing conditions and regulatory approvals.
Forward-Looking and Cautionary
Statements
This press release contains "forward-looking statements" (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning's financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions; conditions in the financial and credit
markets; currency fluctuations; tax rates; product demand
and industry capacity; competition; reliance on a concentrated
customer base; manufacturing efficiencies; cost reductions;
availability of critical components and materials; new product
commercialization; pricing fluctuations and changes in
the mix of sales between premium and non-premium products; new
plant start-up or restructuring costs; possible
disruption in commercial activities due to terrorist activity,
armed conflict, political or financial instability, natural
disasters, adverse weather conditions, or major health concerns;
adequacy of insurance; equity company activities; acquisition and
divestiture activities; the level of excess or obsolete inventory;
the rate of technology change; the ability to enforce patents;
product and components performance issues; retention of key
personnel; stock price fluctuations; and adverse litigation or
regulatory developments. These and other risk factors
are detailed in Corning's filings with the Securities and
Exchange Commission. Forward-looking statements speak only as
of the day that they are made, and Corning undertakes no obligation
to update them in light of new information or future events.
Digital Media
Disclosure
In accordance with guidance provided by the SEC regarding the use
of company websites and social media channels to disclose material
information, Corning Incorporated ("Corning") wishes to notify
investors, media, and other interested parties that it intends to
use its website
(http://www.corning.com/worldwide/en/about-us/news-events.html) to
publish important information about the company, including
information that may be deemed material to investors. The list of
websites and social media channels that the company uses may be
updated on Corning's media and website from time to time. Corning
encourages investors, media, and other interested parties to review
the information Corning may publish through its website and social
media channels as described above, in addition to the company's SEC
filings, press releases, conference calls, and webcasts.
About Corning
Incorporated
Corning (www.corning.com) is one of the world's leading innovators
in materials science, with a 166-year track record of life-changing
inventions. Corning applies its unparalleled expertise in glass
science, ceramic science, and optical physics along with its deep
manufacturing and engineering capabilities to develop
category-defining products that transform industries and enhance
people's lives. Corning succeeds through sustained investment in
RD&E, a unique combination of material and process innovation,
and deep, trust-based relationships with customers who are global
leaders in their industries.
Corning's capabilities are versatile and synergistic, which allows
the company to evolve to meet changing market needs, while also
helping our customers capture new opportunities in dynamic
industries. Today, Corning's markets include optical
communications, mobile consumer electronics, display technology,
automotive, and life sciences vessels. Corning's industry-leading
products include damage-resistant cover glass for mobile devices;
precision glass for advanced displays; optical fiber, wireless
technologies, and connectivity solutions for state-of-the-art
communications networks; trusted products to accelerate drug
discovery and delivery; and clean-air technologies for cars and
trucks.
Media Relations
Contact:
M. Elizabeth Dann
(607) 974-4989
dannme@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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This
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
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