3M Buys Personal-Safety Unit from Johnson Controls for $2 Billion

By Austen Hufford 

3M Co. is buying a personal-safety unit from Johnson Controls Inc. for about $2 billion, the companies said Thursday.

The unit, Scott Safety, makes respiratory protection, gas and flame detection, thermal imaging and other products for fire and police departments and customers in industrial, oil and gas, chemical, military and homeland defense segments.

Scott Safety is based in Monroe, N.C., and has about 1,500 employees globally. The business reported 2016 revenue of about $570 million.

Johnson Controls, which expects to collect between $1.8 billion and $1.9 billion in cash, said the sale helps it focus on its two core businesses, buildings and energy. The company will use the money to pay down part of $4 billion in debt resulting from its September merger with Tyco International PLC.

3M said the unit will complement its personal-safety portfolio, which is considered a core growth business.

The deal is expected to close in the second half of 2017 and 3M estimates the deal will hurt earnings per share by 10 cents in the year following the deal's close. Excluding accounting adjustments and one-time expenses, 3M expects the deal to add 10 cents to earnings over the same period.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

March 16, 2017 10:23 ET (14:23 GMT)

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