3M Buys Out Investor In Japanese Subsidiary For $885M
Maplewood-based 3M Company announced Wednesday plans to acquire the remaining 25 percent stake in its Japan-based subsidiary Sumitomo 3M for about $885 million.
The business, which will be known as 3M Japan after the deal closes, manufactures and develops chemical products, adhesive tapes and polishing materials, as well as electrical and telecommunications equipment, among other things.
Sumitomo 3M was established in 1961 as the result of a joint venture between 3M, Sumitomo Electronic Industries, and NEC Corporation. In 2003, 3M bought out NEC’s 25 percent share in the company, which brought its interest to 75 percent. Now 3M plans to buy the last quarter of the company from Sumitomo Electronic Industries.
“This investment allows us to gain full control of one of 3M’s most successful subsidiaries,” 3M President and CEO Inge Thulin said in a statement. “It is a strategic acquisition in a business we know well, as we have grown the business profitably for over 50 years.”
3M said the deal is expected to close on September 1. The company estimates the acquisition will add about $0.08 per share to its earnings during the year after the deal closes.
“Our Japanese organization is energized by 3M’s increased investment in the business,” Koichi Mimura, president of Sumitomo 3M, said in a statement. “We are committed to growing the business further in this large and important market.”