3M to Acquire Attenti Holdings S.A.

ST. PAUL, Minn. & TEL AVIV, Israel--(BUSINESS WIRE)--3M announced today it has entered into a definitive agreement to acquire Attenti Holdings S.A. from an investor group led by Francisco Partners, for a purchase price of $230 million in cash. Based in Tel Aviv, Israel, Attenti is a leading supplier of remote people monitoring technologies used for a variety of offender monitoring applications, such as people awaiting trial or on probation; and to assist eldercare facilities in monitoring and enhancing the safety of patients.

“This acquisition will position our track and trace business as a leader in the high growth electronic offender monitoring market and add Global Positioning System (GPS) and active Radio Frequency (RF) technology and capability to our portfolio”

“This acquisition will position our track and trace business as a leader in the high growth electronic offender monitoring market and add Global Positioning System (GPS) and active Radio Frequency (RF) technology and capability to our portfolio,” said Rory Yanchek, general manager, 3M Track and Trace Solutions. “The addition of Attenti’s location tracking capability enhances the value we can deliver to our customers around the world.”

3M provides comprehensive track and trace solutions that deliver customer value by improving the safety, security and utilization of assets through applications such as file tracking, library management, secure supply chain solutions and locating and marking for buried underground utilities.

Yoav Reisman, Attenti CEO, said, "This is an exciting opportunity to continue growing our business within the framework of a renowned global leader and innovator which recognizes the value of our unique market position and product portfolio.” Reisman added, “3M’s culture of innovation fits well with our own and its research and development capabilities and global reach will help accelerate the growth of our business.”

Attenti’s business partners are private and public organizations, monitoring service providers, security and telecommunications companies, as well as government agencies in over 25 countries around the world.

On a GAAP reported basis, 3M estimates the acquisition to be slightly 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 slightly accretive to earnings over the same period.

“For 3M Israel, this acquisition will strengthen our presence and contribute to growth in our local market,” added Nir Leshem, managing director, 3M Israel.

Attenti employs approximately 340 people at its major operational locations in Tel Aviv, Israel; Tampa, Fla.; Naperville, Ill. and; Milwaukee, Wis., as well as in Plovdiv, Bulgaria; and Sydney, Australia. Sales for 2010 are expected to be approximately $100 million. The transaction is expected to be completed in the fourth quarter, subject to customary closing conditions and regulatory approvals.

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,” “project,” “intend,” “plan,” “believe,” “will,” “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; (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 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; and (9) 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, 2009 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 “Risk Factors” in Part I, Item 1A (Annual Report) and in 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.

About Attenti
Attenti is a leading global provider of remote people monitoring technologies. Attenti is owned by an investor group led by Francisco Partners.

About 3M
A recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3M’s core strength is applying its more than 40 distinct technology platforms – often in combination – to a wide array of customer needs. With $23 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 65 countries. For more information, visit www.3m.com or follow @3MNews on Twitter.