Biotech Values

[DewDiligence]

3M Acquires Arizant for $810M in Cash

[3M, one of the world’s truly great companies (IMO), has been on an acquisition tear lately, having inked two deals in recenty days (#msg-53865254, #msg-53933442). Healthcare is one of 3M’s fastest-growing business segments.]

http://online.wsj.com/article/SB10001424052748704644404575481460361839040.html

›SEPTEMBER 9, 2010, 2:16 P.M. ET
By NATHAN BECKER

3M Co. said it will pay $810 million to buy Arizant Inc., which specializes in products to prevent hypothermia during surgery, from private-equity firm Court Square Capital as the industrial conglomerate continues its recent string of acquisitions.

Arizant's products help maintain normal body temperature in surgical patients, helping to prevent surgical infections and other problems caused by surgical hypothermia. 3M has its own infection-prevention operations, offering a wide range of products for trying to reduce health care-associated infections.

3M doesn't expect the acquisition to affect its bottom line the first year after completion of the deal, excluding charges.

"In addition to Arizant's market-leading products, its rich intellectual property portfolio and solid technology platforms expand 3M's infection prevention offerings and will help to drive growth internationally," said Debra Rectenwald, who heads up 3M's infection-prevention division.

The deal is the latest for 3M, which has been snapping up companies of late. Last month, 3M agreed to buy both Cogent Inc. and Attenti Holdings SA, both adding to its high-tech security operations. Meanwhile, private-equity companies have been cashing out of holdings through either sales or initial public offerings.

3M, which makes thousands of products ranging from Post-It notes to furnace filters and power lines, has seen stronger sales lately—partly fueled by new products and growth in emerging markets. In July, it posted second-quarter revenue growth of 43% on rebounding demand.‹