3M To Sell Identity Management Business For $850M
In yet another restructuring move, 3M said it would sell its identity management business for $850 million to Gemalto, a digital security company from Amsterdam.
Maplewood-based 3M has been on a selling spree the last couple of years, divesting itself of business groups it deemed to be non-essential.
Among those sold include its library systems business ($100 million in annual sales); Faab Fabricauto, a France-based license plate manufacturer and 3M subsidiary ($30 million in annual sales); its temporary protective films business ($50 million in annual sales); and its pressurized foam adhesives business ($20 million in annual sales). Earlier this week, 3M added its safety prescription eyewear business to the list — a unit that took in $45 million in annual sales.
In an earnings forecast at the end of last year, 3M said it was working to make itself “leaner and better positioned to allocate resources to its most promising opportunities.”
3M’s identity management business was considered a major player within the U.S. securities industry. The unit manufactures a number of identification devices, such as scanners that read a person’s finger, face or iris.
Gemalto’s acquisition of 3M’s identity management unit also includes 3M Cogent Inc., a wholly owned subsidiary of 3M, which makes biometric solutions for the areas of law enforcement, border patrol and civil identification.
Altogether, 3M’s identity management business and Cogent had annual sales of $215 million and profit of $58 million.
“After completing a thorough strategic review, we believe that the identity management business will be better positioned with a company that is primarily focused on security solutions,” said John Riccardi, vice president and general manager of 3M’s traffic safety and security division, in a statement.
As part of the sale, the approximately 450 workers under 3M’s identity management business will transfer to Gemalto.
“Gemalto is delighted to welcome new members to its international team,” said Gemalto CEO Philippe VallÃ©e in a statement.
Both companies anticipate the transaction to close sometime in the first half of 2017.