3M Sells Off $20M Pressurized Foam Adhesives Unit
3M agreed to sell the assets of its Pressurized Polyurethane Foam Adhesives business, it said on Wednesday, an arm of the company that generates annual sales of approximately $20 million.
The sale is the third of its kind in roughly three months. In a release, Ty Silberhorn, vice president and general manager of 3M’s industrial adhesives and tapes division, echoed a similar statement the company gave during its previous two deals: “After strategic portfolio review, we decided to exit this business and focus on our core adhesives, sealants, and tapes businesses.”
Andover, Massachusetts-based Innovative Chemical Products Group (ICP Group) will acquire a number of products from 3M, including roof tile adhesives used to attach concrete or clay roof tiles. Maplewood-based 3M’s adhesive construction facilities in Tomball, Texas and Coral Springs, Florida will transfer ownership to ICP Group, along with 20 3M employees that support the business.
Terms of the transaction were not disclosed, but the deal is expected to close in the first quarter of 2016.
Last October, 3M announced agreements to sell two of its businesses to two different companies on the same day. 3M’s Library Systems business and its Faab Fabricauto business, a subsidiary of its traffic safety and security division, were both sold for undisclosed amounts. Together, the businesses generated annual sales of $130 million.
Since 2012, 3M has realigned from six sectors to five and from 40 businesses to 26. In an earnings forecast last month, the company said it was working to make itself “leaner and better positioned to allocate resources to its most promising opportunities.”
3M CEO Inge Thulin said last month that strategic acquisitions will best complement the company’s organic growth and support premium margins and return on invested capital. “We are building our company for efficient growth in 2016 and beyond,” he said.