December 11, 2017
3M Corp. today announced that it has entered into agreements related to the sale of substantially all of its communication markets division to Corning Inc., for US$900 million, subject to closing and other adjustments.
The business consists of optical fiber and copper passive connectivity offerings for the telecommunications industry including 3M’s xDSL, FTTx, and structured cabling solutions and, in certain countries, telecommunications system integration services. Annual global sales are an estimated US$400 million.
“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 at 3M.
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 be completed in 2018. Approximately 500 3M employees are expected to join Corning upon completion of the transaction.
“This transaction expands both our global market reach and our high-bandwidth portfolio,” said Clark Kinlin, executive vice president of Corning Optical Communications. “It also provides new co-innovation opportunities and enhances our ability to serve customers globally.”
3M said it expects to realize a gain of approximately $0.40 per share from this transaction, net of actions related to the divestiture.