Marlin Levison, Star Tribune
3M to acquire high-tech ceramics maker
- Article by: ADAM BELZ
- Star Tribune
- October 1, 2012 - 10:01 AM
3M will buy Ceradyne, a high-tech ceramics maker in California, for about $860 million.
The Maplewood company offered $35 per share for Ceradyne, a 43 percent premium on the smaller company's stock price. Shares in Ceradyne shot up Monday morning.
The transaction is expected to close during the fourth quarter of this year.
"Ceradyne is a strong company with a great reputation, world-class technology in advanced ceramics, and leadership positions in the markets it serves," said 3M Industrial and Transportation Business Executive Vice President Chris Holmes, in a statement. "Ceradyne is an excellent complement to our existing businesses in transportation, energy markets and defense."
Headquartered in Costa Mesa, Calif., with operations in the United States, Canada, China and Germany, Ceradyne had $572 million in sales in 2011. The firm develops and produces advanced technical ceramics for the automotive, oil and gas, solar, industrial, electronics and defense industries. The company's ceramics are used by the military for helicopters, missile nose cones and helmets and body armor for soldiers.
"3M is renowned for its innovation, its R&D and its global reach," Joel Moskowitz, co-founder and chief executive of Ceradyne, said in a statement. "This is a great fit and I know that advanced ceramics technologies have a tremendous future within 3M and can contribute to the development of unique solutions for many demanding applications."
Adam Belz • 612-673-4405 Twitter: @adambelz
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