3M has received a binding offer from Teledyne Technologies Incorporated, to purchase 3M’s gas and flame detection business for $230 million, subject to closing and other adjustments. Teledyne is a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems. The gas and flame detection business is part of 3M’s Personal Safety Division.
The business is a leader in fixed and portable gas and flame detection with products sold under the Oldham, GMI, Detcon, Simtronics and Scott Safety brand names. 3M will retain the Scott Safety brand name, which is not included in the transaction. 3M’s gas and flame detection business has annual global sales of approximately $120 million.
“After completing a thorough strategic review, we plan to divest the gas and flame detection business to focus on the other businesses within our personal safety portfolio,” said Bernard Cicut, vice president, Personal Safety Division. “Our employees have done an outstanding job and we thank them for their dedication to this business.”
3M’s Personal Safety Division is focused on applying 3M science to improve the health, safety and productivity of workers all over the world. The business is a global leader in providing Personal Protective Equipment and solutions to a wide array of industries including manufacturing, construction, oil and gas, mining, utilities, defense, healthcare, and the fire service. 3M Personal Safety offers an extensive product line which includes respirators, self-contained breathing apparatus, hearing protection, fall protection, reflective materials and head, eye, and face protection.
Approximately 500 employees who primarily support the gas and flame detection business are expected to join Teledyne upon completion of the sale.
The transaction is expected to be completed in the second half of 2019, subject to customary closing conditions and regulatory approvals, while 3M’s acceptance of the binding offer is subject to the completion of consultation and information requirements with relevant works councils.
3M expects to record a gain of approximately $0.20 per diluted share from this divestiture.
Houlihan Lokey acted as financial advisor to 3M.
