3M to acquire Aearo Tech for $1.2 billion
19 Nov 2007
Mumbai: Global technology conglomerate 3M Co will acquire Aearo Technologies Inc, a maker of hearing- and eye-protection and energy-absorbing products, for $1.2 billion.
3M, which makes products ranging from Scotch tape to optical films for liquid crystal display products, said the deal for Aearo will be financed through a combination of cash and debt.
Aearo is owned by funds advised by London-based private equity firm Permira and the company''s management. Permira, through the funds, bought Aearo for about $765 million last year.
St. Paul, Minnesota-based 3M said the Aearo acquisition would add to its existing line of safety, security and protection products, such as respiratory masks.
The deal also will leave 3M as the second largest player in the eye and face protection market. Those lines of businesses accounted for $3 billion in the company''s sales and 3M is targeting sales of $10 billion.
"For some time now, we have been actively seeking the right acquisition to complement our leading respiratory position and broaden our personal safety product portfolio. Aearo is that acquisition," Jean Lobey, executive vice president in charge of 3M''s safety, security and protection services unit, said.
"The acquisition provides us with a broader platform to accelerate growth and will enable us to provide more complete personal protection solutions to our industrial, military and construction customers, and to our retail accounts," he said, adding 3M can use its international reach to boost Aearo sales in Latin America and the Asia Pacific region where it has minimal presence.
