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3M (MMM) Expands Safety Portfolio with Latest Acquisition
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3M Company (MMM - Free Report) recently entered into a definitive agreement with Johnson Controls International plc (JCI - Free Report) to acquire the latter’s operating unit Scott Safety. The deal, worth $2.0 billion, is expected to close in the second half of 2017.
Scott Safety is a premier manufacturer of innovative products, which include self-contained breathing apparatus (SCBA) systems, gas and flame detection instruments, and other safety devices which will boost 3M’s personal safety portfolio. Scott Safety’s annual revenue in 2016 was approximately $570 million. It currently employs approximately 1,500 people worldwide.
The acquisition will likely boost 3M’s technology, manufacturing, global capabilities and brand. In addition, it will enable 3M to expand its recent portfolio actions within the Safety and Graphics business to help position for long-term success. This acquisition will help 3M to provide a broader array of safety products and solutions to customers worldwide.
The company expects the absorption of Scott Safety to be 10 cents per share accretive to adjusted earnings in the year after the deal closes.
3M has outperformed the Zacks categorized Diversified Operations industry in the last three months with an average return of 6.8% compared with 0.8% gain recorded by the industry.
The company continues to deliver sustainable increase in earnings and free cash flow, benefiting from its long-term strategy of accelerating investment in high-growth programs. It’s ability to convert high R&D spends into up-cycle market share gains and strong pricing powers determine its success.
Organic growth remains the first priority of the company as it continues to invest in infrastructure and commercialization capability. 3M has initiated some prudent steps to strengthen and focus on its core portfolio of businesses. Since 2012, the company has pruned its businesses thereby improving customer relevance, productivity and speed through a leaner operating structure. At the same time, 3M has maintained a steady investment in R&D to develop innovative products.
Barloworld has a long-term earnings growth expectation of 18.70% and is currently trading at a forward P/E of 13.2x.
Hitachi has a long-term earnings growth expectation of 13% and is currently trading at a forward P/E of 13.6x.
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3M (MMM) Expands Safety Portfolio with Latest Acquisition
3M Company (MMM - Free Report) recently entered into a definitive agreement with Johnson Controls International plc (JCI - Free Report) to acquire the latter’s operating unit Scott Safety. The deal, worth $2.0 billion, is expected to close in the second half of 2017.
Scott Safety is a premier manufacturer of innovative products, which include self-contained breathing apparatus (SCBA) systems, gas and flame detection instruments, and other safety devices which will boost 3M’s personal safety portfolio. Scott Safety’s annual revenue in 2016 was approximately $570 million. It currently employs approximately 1,500 people worldwide.
The acquisition will likely boost 3M’s technology, manufacturing, global capabilities and brand. In addition, it will enable 3M to expand its recent portfolio actions within the Safety and Graphics business to help position for long-term success. This acquisition will help 3M to provide a broader array of safety products and solutions to customers worldwide.
The company expects the absorption of Scott Safety to be 10 cents per share accretive to adjusted earnings in the year after the deal closes.
3M has outperformed the Zacks categorized Diversified Operations industry in the last three months with an average return of 6.8% compared with 0.8% gain recorded by the industry.
The company continues to deliver sustainable increase in earnings and free cash flow, benefiting from its long-term strategy of accelerating investment in high-growth programs. It’s ability to convert high R&D spends into up-cycle market share gains and strong pricing powers determine its success.
Organic growth remains the first priority of the company as it continues to invest in infrastructure and commercialization capability. 3M has initiated some prudent steps to strengthen and focus on its core portfolio of businesses. Since 2012, the company has pruned its businesses thereby improving customer relevance, productivity and speed through a leaner operating structure. At the same time, 3M has maintained a steady investment in R&D to develop innovative products.
3M carries a Zacks Rank #3 (Hold).
A couple better-ranked stocks in the industry include Hitachi, Ltd. (HTHIY - Free Report) and Barloworld Ltd. (BRRAY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barloworld has a long-term earnings growth expectation of 18.70% and is currently trading at a forward P/E of 13.2x.
Hitachi has a long-term earnings growth expectation of 13% and is currently trading at a forward P/E of 13.6x.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>