3M is buying filtration company, CUNO in an all cash deal for about $1.35 billion or $72 dollars per share. Included in the transaction is $60 million of existing net debt.
3M says that the acquisition should increase the company’s earnings next year, but its earnings per share guidance for this year will remain the same as before. 3M expects to earn between $4.15 and $4.25 per share this year.
CUNO has become a leader by providing innovative liquid filtration solutions to customers in many of the same industries 3M serves, including industrial, health care, consumer, and transportation.
“Liquid filtration demand is growing rapidly, driven by critical customer needs for enhanced liquid separation and pure water,” said Harold Wiens, executive vice president, 3M Industrial Business. “Our current air filtration business based upon our separation and filtration technologies totals well over $1 billion.”
“We see multiple opportunities to take advantage of the complementary positions of the two companies, and believe that combining 3M’s technology and global presence with CUNO’s large and expanding installed base and strong product portfolio will enable us to achieve significant revenue and cost synergies,” he added.
CUNO has had sales increasing at a compound annual growth rate of over 9% and earnings per share growing at a compound annual growth rate more than 30% over the past 10 years.
The acquisition is expected to reach completion in the third quarter of this year, and is subject to regulatory and CUNO shareholder approval and other customary closing conditions.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
