3M offloads communications division to Corning for $900M
Corning has agreed to buy substantially all of 3M’s Communication Markets Division to for $900 million in cash. The deal is part of the company’s strategy to spend $1 billion to $3 billion in acquisitions, Corning said.
3M’s communications business, which has annual global sales of about $400 million, consists of optical fibre and copper passive connectivity products for the telecom industry – including xDSL, FTTx and structured cabling systems – and, in certain countries, telecom system integration services.
“This transaction expands both our global market reach and our high-bandwidth portfolio. It also provides new co-innovation opportunities and enhances our ability to serve customers globally,” said Clark S. Kinlin, executive vice president, Corning Optical Communications. “As the industry’s only true end-to-end manufacturer and supplier of optical solutions, we look forward to bringing these two strong organizations together and welcoming a group of outstanding employees.”
3M’s Communication Markets Division is headquartered in Austin, Texas, with a dedicated manufacturing facility in Pontchâteau, France, and operations in Hannover, Germany. Approximately 500 3M employees are expected to join Corning when the transaction concludes.
“After completing a thorough strategic review, we believe that this business will be well positioned with Corning,” said Ashish Khandpur, executive vice president, Electronics & Energy business group. “I want to thank our Communication Markets division team for their outstanding contributions.”
The sale, which is subject to consultation or information requirements with relevant works councils and to customary closing conditions and regulatory approvals, is expected to close in 2018.