3M Selling Static Control Business
The 3M Company announced on Monday that it is selling its static control business to Chino, California-based Desco Industries Inc.
The Maplewood-based company said the sale is part of typical portfolio management. Details of the transaction were not disclosed. Global sales of the static control business unit are approximately $45 million, according to 3M.
After a “thorough strategic review, we have made the decision to exit the static control business and sell to Desco, a company fully focused on the static control industry and its evolving customer needs,” 3M vice president and general manager of the electronic materials solutions division Herve Gindre said in a statement.
The static control business focuses primarily on products that prevent, detect and protect against electrostatic discharge events, which can cause harmful effects, including damaging electronics. Approximately 150 people work in 3M’s static control business, with a substantial number at a manufacturing facility in Sanford, North Carolina. 3M says “substantially all” of the employees are expected to remain and work for Desco.
“We plan to work with 3M to facilitate a smooth transition of the business for customers and employees,” Desco CEO John Brake said in a statement.
Back in October, 3M shot to the top of the Dow Jones Industrial Average after coming off a third quarter that beat analysts’ expectations. Despite seeing profits climb, the company downgraded its full-year outlook due to increased foreign currency impacts.