3M Completes Sumitomo JV Acquisition to Be Sole Owner - Analyst Blog


3M Company ( MMM ) 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 largest subsidiaries.  

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. ( FSS ), Macquarie Infrastructure Company LLC. ( MIC ) and ITT Corporation ( ITT ), each having a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: MMM , ITT , FSS , MIC



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