) recently completed the acquisition of its Japanese joint venture
Sumitomo 3M Ltd. to be the sole owner of the entity. 3M purchased
Sumitomo Electric Industries Ltd's 25% stake in the joint venture
for approximately $865 million. Post acquisition, the business will
be known as 3M Japan Ltd, with 3M having full control of one of its
Sumitomo 3M has a leading market share in most of the industrial
divisions including electronics and energy. Also, the company
expects significant opportunities in Japan's addressable markets
for healthcare, safety and graphics and consumer businesses.
3M aims to respond to strategic acquisition opportunities that can
strengthen its portfolio. This acquisition is expected to be
accretive by approximately 8 cents per share to the company's
earnings during the first year of its operation. The company
continues to deliver sustainable increases in sales, earnings and
free cash flow, benefiting from its long-term strategy of
accelerating investment in high-growth programs.
3M, together with its subsidiaries, operates as a diversified
technology company with manufacturing operations spread over 70
countries. The company aims to deliver innovative security
solutions to businesses and governments worldwide, thus ensuring
the security of people and documents.
3M also remains focused on inventing new products to maintain its
competitive advantage worldwide. The rise in demand for innovative
3M product services is likely to augment its overall revenues.
3M currently has a Zacks Rank #3 (Hold). Other stocks that look
promising in the industry include Federal Signal Corp. (
), Macquarie Infrastructure Company LLC. (
) and ITT Corporation (
), each having a Zacks Rank #2 (Buy).
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