3M to Sell its Gas and Flame Detection Business

ST. PAUL, Minn.–(BUSINESS WIRE)–3M announced today it has received a binding offer from Teledyne
Technologies Incorporated, to purchase 3M’s gas and flame detection
business for $230 million, subject to closing and other adjustments.
Teledyne is a leading provider of sophisticated instrumentation, digital
imaging products and software, aerospace and defense electronics, and
engineered systems. The gas and flame detection business is part of 3M’s
Personal Safety Division.

The business is a leader in fixed and portable gas and flame detection
with products sold under the Oldham, GMI, Detcon, Simtronics and Scott
Safety brand names. 3M will retain the Scott Safety brand name, which is
not included in the transaction. 3M’s gas and flame detection business
has annual global sales of approximately $120 million.

After completing a thorough strategic review, we plan to divest the gas
and flame detection business to focus on the other businesses within our
personal safety portfolio,” said Bernard Cicut, vice president, Personal
Safety Division. “Our employees have done an outstanding job and we
thank them for their dedication to this business.”

3M’s Personal Safety Division is focused on applying 3M science to
improve the health, safety and productivity of workers all over the
world. The business is a global leader in providing Personal Protective
Equipment and solutions to a wide array of industries including
manufacturing, construction, oil and gas, mining, utilities, defense,
healthcare, and the fire service. 3M Personal Safety offers an extensive
product line which includes respirators, self-contained breathing
apparatus, hearing protection, fall protection, reflective materials and
head, eye, and face protection.

Approximately 500 employees who primarily support the gas and flame
detection business are expected to join Teledyne upon completion of the
sale.

The transaction is expected to be completed in the second half of 2019,
subject to customary closing conditions and regulatory approvals, while
3M’s acceptance of the binding offer is subject to the completion of
consultation and information requirements with relevant works councils.

3M expects to record a gain of approximately $0.20 per diluted share
from this divestiture.

Houlihan Lokey 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.

Contacts

3M Media Contact:
Stephen Sanchez, 651-737-5967

3M Investor Contacts:
Bruce Jermeland, 651-733-1807
Tony
Riter, 651-733-1141

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