ST. PAUL, Minn.--(BUSINESS WIRE)--3M today announced that it has entered into an agreement with Avon Rubber p.l.c. to purchase 3M’s advanced ballistic-protection business for $91 million, subject to closing and other adjustments. A further contingent consideration of up to $25 million is payable depending on the outcome of pending tenders. Avon Rubber is a provider of advanced chemical, biological, radiological and nuclear respiratory protection systems for military, law enforcement and fire customers. 3M’s ballistic-protection business is part of its advanced materials business.
As a part of ongoing portfolio management, 3M has decided to sell this business and focus on other businesses within its Advanced Materials Division. The ballistic-protection business consists of ballistic helmets, body armor, flat armor and related helmet-attachment products serving government and law enforcement. It has annual global sales of approximately $85 million.
“I would like to extend my sincere appreciation to every member of the team for their hard work and dedication to this business,” said Tim Koenig, vice president and general manager, 3M Advanced Materials Division. “Through their efforts, this business is well known as a trusted leader in the industry and we believe Avon Rubber is a very good fit to carry it forward.”
The Advanced Materials Division, a part of the Transportation & Electronics Business Group, remains focused on serving its customers with innovative, value-creating materials including fluoropolymers, ceramics, glass bubbles and other highly engineered materials and products.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in late 2019 or early 2020. Approximately 280 3M employees, who primarily support the business, are expected to join Avon Rubber as a result of the sale.
3M expects the earnings per share impact of this divestiture to be neutral.
William Blair acted as financial advisor to 3M.
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