3M Announces Plan to Acquire Ceradyne

Andrew Klips |

3M Announces Plan to Acquire Buy Ceradyne3M Co. (MMM) has said it has reached an agreement to buy ceramic armor maker Ceradyne Inc. (CRDN) for $35 per share in a deal valued at about $860 million. The value of the transaction is based upon approximately $670 million net in cash, cash equivalents, investments and acquisition of debt. The offer represents a 43 percent premium over Ceradyne’s Friday closing price of $24.43.

3M said that excluding one-time costs related to accounting adjustments and integration expenses, the acquisition will add about one cent per share to its earnings in the first year upon closing the deal. It is expected that the deal will close during the fourth quarter of this year.

Ceradyne is headquartered in Costa Mesa, Calif., with operations in the U.S., Canada, China and Germany. The company has annual revenue of approximately $500 million.

Noting that the acquisition of Ceradyne is an excellent complement to its existing operations, 3M Industrial and Transportation Business Executive Vice President Chris Holmes said, “Ceradyne is a strong company with a great reputation, world-class technology in advanced ceramics, and leadership positions in the markets it serves.”
Upon completion of the transaction, Ceradyne will become a component of 3M’s Energy and Advanced Materials unit within its Industrial Transportation Business.

The Board of Directors of Ceradyne has unanimously recommended that the stockholders of Ceradyne accept the offer.
In its most recent news, on September 26, Ceradyne reported that it received its first delivery order covering two months of 2013 ESAPI requirements totaling over $14 million.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
MMM 3M Company 169.50 -0.36 -0.21 2,013,555
SUMXF Supremex Inc. 4.25 0.00 0.00 0


Emerging Growth

Kiwa Bio-Tech Products Group Corp

Kiwa Bio-Tech Products Group Corp develops, manufactures, distributes and markets, cost-effective and environmentally safe bio-technological products for agriculture in China.

Private Markets

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…