3M Sells Optical Fiber, Copper Passive Connectivity Business to Corning for $900M
Maplewood-based 3M has agreed to sell its communication markets division to New York-based glass and ceramics manufacturer company Corning Inc. for $900 million in cash, the two companies announced on Monday.
The 3M division specializes in optical fiber and copper passive connectivity solutions for telecommunications businesses and is headquartered in Austin, Texas with a manufacturing facility in PontchÃ¢teau, France, and operations in Hannover, Germany. The business group had annual global sales of about $400 million, according to a statement.
Approximately 500 3M employees are expected to join Corning once the deal closes sometime next year, 3M said.
“After completing a thorough strategic review, we believe that this business will be well positioned with Corning,” said Ashish Khandpur, executive vice president of 3M’s electronics and energy business group, in prepared remarks.
In a separate statement, Corning said that the purchase was part of a plan to invest approximately $1 billion to $3 billion in acquisitions.
“This transaction expands both our global market reach and our high-bandwidth portfolio. It also provides new co-innovation opportunities and enhances our ability to serve customers globally,” said Clark S. Kinlin, executive vice president of Corning Optical Communications.
3M said it expects to realize a gain of approximately $0.40 per share from the transaction, which is subject to regulatory approval and other customary closing conditions in the US and Europe.
3M stock increased slightly—less than one percent—during Monday trading and closed at $239.26 per share. Investors reacted similarly to Corning, sending its shares up less than one percent on Monday to a $32.58 per share close.