Report: 3M Mulling Sale Of $1B Electronics Units
3M Corporation is reportedly planning to sell portions of its electronics business that account for about $1 billion of the company’s $31 billion in annual sales.
3M representative Jacqueline Berry declined to confirm or deny whether the company’s eyeing a divestiture, saying that 3M doesn’t comment on rumors. But Bloomberg News reported Thursday that the Maplewood-based manufacturer is working with Goldman Sachs Group, Inc., to sell portions of the business unit, which it believes are underperforming.
3M will likely sell different pieces of the business unit gradually rather than in a bulk sale to a single buyer, a source “close to the matter” told Bloomberg. The unidentified source said the units could sell for around $1 billion.
In November 2012, 3M CEO Inge Thulin said that several businesses, which together comprise $2.5 billion in annual sales, are under strategic review to be fixed, scaled up, sold, or closed.
In a much smaller deal, 3M sold its fly-fishing businesses Scientific Anglers and Ross Reels in May to Vermont-based Orvis Company, Inc., for an undisclosed sum.
However, the company also said in December that it plans to spend between $5 billion and $10 billion on acquisitions over the next five years.
Shares of 3M’s stock were trading up about 1.23 percent at $134.49 per share Thursday afternoon.
In other news, 3M was ranked 23rd on Fortune’s “World’s Most Admired Companies” list Thursday, ranking the highest of any Minnesota company on the list.