New York: Diversified firm 3M Co Monday said it will buy Switzerland-based Winterthur Technologies AG for $448 million in a bid to cater to a broader range of industrial grinding and finishing needs.
3M has a global consumer and office, display and graphics and health care, to name a few. It employs 75,000 people worldwide.
Winterthur is a leading global supplier of precision grinding technology serving customers in the growing area of hard-to-grind precision applications in industrial, automotive, aircraft, and cutting tools.
As per the agreement, 3M will pay Swiss francs 62 ($63.56) for each share through a public tender offer taking the aggregate total to $448 million, it said in a statement.
3M said the target company’s board has approved the offer and Swiss firm’s chairman has agreed to sell his 14% stake to 3M.
Besides, on 66.67% of Winterthur’s shares the offer is conditional depending on shareholders’ nod. The deal is expected to be completed in the first quarter of 2011.
“Adding Winterthur would enhance and extend our existing product line, enabling us to provide solutions for a broader range of industrial grinding and finishing needs,” 3M (Abrasive Systems Division) president and general manager Chris Holmes said.
Winterthur has a strength employs about 1,300 people. During the first six-month of 2010, sales stood at $114 million, up more than 30% over the same period last year.