Diversified US technology company 3M is to sell its military personal protective-equipment business (including rights to the Ceradyne brand) to UK-headquartered Avon Rubber for at least USD91 million, subject to customary closing conditions and regulatory approvals.
The deal is expected to close in late 2019 or early 2020. 3M expects about 280 employees to transfer to Avon Rubber after completion.
A further USD25 million could be paid "depending on the outcome of pending tenders", 3M announced in a 7 August statement. It expects a neutral impact on its earnings per share.
Avon Rubber is funding the acquisition with existing cash resources and an USD85 million three-year revolving credit facility.
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