WCCO EYE4 LOGO WCCO Radio wcco-eye-red01, ww color red

Latest News

3M Buying Ceradyne For About $847 Million

View Comments
3M, generic, logo

(credit: Karen Bleier/AFP/Getty Images)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up
Today's Most Popular Video
  1. DeRusha Eats: Brake Bread
  2. Husband And Wife Die 15 Hours Apart
  3. Polk County Sheriff's Deputy Laid To Rest
  4. Como Zoo Animals Visit WCCO
  5. Troops Homecoming Sweetened By Local Girl Scouts

ST. PAUL, Minn. (AP) — Office products maker 3M is buying ceramic components maker Ceradyne for approximately $847 million in cash, saying it will complement existing businesses in the transportation, energy and defense sectors.

3M Co. said Monday that it will pay $35 for each Ceradyne Inc. share, a 43 percent premium to the company’s Friday closing price of $24.43.

Ceradyne has approximately 24.2 million outstanding shares, according to FactSet.

The companies put the total value of the transaction at about $860 million.

Ceradyne’s board has unanimously recommended shareholders accept the offer. A majority of Ceradyne’s shares must be tendered in the offer for the acquisition to move forward.

A 3M subsidiary is expected to start a tender offer to buy all of Ceradyne’s outstanding stock within 10 business days.

Ceradyne, based in Costa Mesa, Calif., has annual revenue of approximately $500 million. It will become part of 3M’s energy and advanced materials unit, which is part of the industrial and transportation business.

3M, maker of Post-It sticky notes, has operations in more than 65 countries and is based in St. Paul, Minn.

3M anticipates that the buyout will add 5 cents per share to its earnings in the first year after the deal is complete. Taking out purchase accounting adjustments and expected integration expenses, the transaction is anticipated to add 1 cent to earnings per share over the same period.

The acquisition is expected to close in the fourth quarter.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments
blog comments powered by Disqus