3M to acquire Switzerland's Winterthur Technologies for $448 million
06 December 2010
3M Co, the $23-billion turnover company that is known for making Post-it sticker pads, today revealed that it will acquire Switzerland's precision grinding technology supplier Winterthur Technologies AG (WTG), for about $448 million.
Zug, Switzerland-based WTG is a leading global supplier of precision grinding technology in the growing hard-to-grind precision applications segment required in industrial, automotive, aircraft, and cutting tools industries.
WTG has manufacturing operations in Switzerland, Germany, Austria, Sweden, Belgium, the USA, Russia, China and Korea. WTG holds a 40-per cent interest in Wendt (India) Ltd, a listed company in the Mumbai Stock Exchange.
WTG participates in the more than $14-billion abrasives market, which is projected to grow at a rate of greater than 4 per cent per year. Demand for hard-to-grind and high-precision materials is fueling the need for improved grinding and finishing processes, said 3M in a statement.
WTG employs over 1,500 persons and reported sales of $114 million in the first six months 2010, up more than 30 per cent over the same period last year.
Under the deal, St. Paul, Minnesota-based 3M will pay 62 Swiss francs ($63.56) for each WTG share through a public tender offer and 3M said that its offer is conditional upon a tendering of 66.67 percent of the shares of WTG.