3M Completes Acquisition of Capital Safety
04 August 2015 - 2:57AM
Business Wire
3M announced today that it has completed its acquisition of
Capital Safety from KKR for a total enterprise value of $2.5
billion, including the assumption of approximately $0.7 billion of
debt, net of cash acquired. Capital Safety is a leading global
provider of fall protection equipment, one of the fastest-growing
safety categories within the global personal protective equipment
industry.
3M’s Personal Safety business provides respiratory and hearing
protection solutions that help improve the safety and security of
workers. The business also supplies products and solutions in other
safety categories such as reflective materials for high-visibility
apparel, protective clothing and eyewear, among others.
Capital Safety’s industry-leading products and solutions include
harnesses, lanyards, self-retracting lifelines and engineered
systems. The business has annual global sales of approximately $430
million.
The addition of Capital Safety bolsters 3M’s personal safety
platform to meet the growing demand for personal protective
equipment driven by increasing regulatory focus on worker safety
across both developed and developing countries. 3M’s global
capability combined with Capital Safety’s products will enable 3M
to bring a broader array of personal protective equipment products
and solutions to more customers worldwide.
On a GAAP reported basis, 3M estimates the Capital Safety
acquisition to be $0.04 per share dilutive to 2015 earnings, all of
which will be incurred in the third quarter.
3M’s 2015 earnings guidance of $7.80 to $8.00, announced on July
23, 2015, excluded the estimated impact from its pending
acquisitions of Capital Safety and Polypore’s Separations Media
business at that time. The acquisition of the Polypore Separations
Media business is still pending completion.
About 3M
At 3M, we apply science in collaborative ways to improve lives
daily. With $32 billion in sales, our 90,000 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 @3MNewsroom.
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 and capital
markets conditions and other factors beyond the Company's control,
including natural and other disasters 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) generating 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; and (10) 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 December 31, 2014, and its
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 Report). 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150803006090/en/
3MMedia Contact:Lori Anderson,
651-733-0831Investor Contacts:Bruce Jermeland,
651-733-1807Mike Kronebusch, 651-733-1141
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