3M in Acquisition Mode – Analyst Blog

3M Company (MMM) announced that it has entered into an agreement to acquire MTI PolyFab Inc., a Canada-based manufacturer of thermal and acoustic insulating material for the airlines industry.

 

MTI PolyFab designs and manufactures a lightweight thermal and acoustic insulation system for a wide variety of airlines to block unwanted airborne and structure-borne noises in aircraft. MTI PolyFab’s aerospace division designs and fabricates energy management systems from a variety of flexible, cellular materials for the aerospace industry.

 

The integration of MTI PolyFab products with those of 3M’s wholly owned subsidiary, Aearo Technologies LLC, will provide an exhaustive range of solutions to the aerospace industry. Aearo offers high-grade soundproofing schemes for noise and vibration minimization to enhance cabin comfort through its thermal acoustic systems.

 

Prior to this, 3M Company had announced an agreement to acquire a majority stake in the A-One branded consumer and office label businesses. A-One is the most renowned office and consumer label brand in Asia and the second largest worldwide. It has been majority owned and operated by the Arai family continuously since its inception in 1959. A-One label products have been manufactured from the company’s Togane plant for office and customers throughout Japan for over 50 years.

 

The 3M brand is recognized and trusted around the world. Household names like Nexcare™, Post-it®, Scotch®, Scotch-Brite®, and Scotchgard™ are part of the 3M portfolio.

 

We believe that continued capital expenditure with new product launches and increased focus on emerging markets like China and India should bolster its prospects across most end markets.

 

3M Company, together with its subsidiaries, operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics; and Electro and Communications. Major competitors include Avery Dennison Corporation (AVY) and El DuPont (DD).

 

We currently have an Outperform recommendation on MMM.