3M acquires advanced technical ceramics maker, Ceradyne

3M acquires advanced technical ceramics maker, Ceradyne

9:48 AM, 3rd October 2012
3M acquires advanced technical ceramics maker, Ceradyne
Chris Holmes, Executive Vice President, Industrial and Transportation Business, 3M.

ST PAUL/COSTA MESA, US: 3M will acquire Ceradyne Inc for $35 per share. The proposed transaction has an aggregate value of approximately $860 million, or approximately $670 million net of cash, cash equivalents, short-term investments and debt acquired. The transaction is expected to close during the fourth quarter of this year.

Ceradyne has annual revenue of approximately $500 million. It is a worldwide leader in the development and production of advanced technical ceramics for demanding applications in the automotive, oil and gas, solar, industrial, electronics and defense industries. The unique characteristics of advanced technical ceramics offer significant advantages over traditional materials such as metals and plastics.

The combination of Ceradyne and 3M will enable new technologies and innovation for uniquely tailored materials requiring advanced ceramics. Ceradyne will join the 3M Energy and Advanced Materials Division within 3M’s Industrial and Transportation Business.

“Ceradyne is an excellent complement to our existing businesses in transportation, energy markets and defense,” said Chris Holmes, Executive Vice President, Industrial and Transportation Business, 3M.

“3M is renowned for its innovation, its R&D and its global reach. I know that advanced ceramics technologies have a tremendous future within 3M and can contribute to the development of unique solutions for many demanding applications,” said Joel Moskowitz, CEO, Ceradyne, Inc.

On a GAAP reported basis, 3M estimates the acquisition to be $0.05 dilutive to earnings in the first 12 months following completion of the transaction. Excluding purchase accounting adjustments and anticipated integration expenses, 3M estimates the acquisition to be $0.01 accretive to earnings over the same period.

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