3M's Ceradyne Acquisition - Analyst Blog
18 Ottobre 2012 - 2:15PM
Zacks
3M Company’s (MMM)
direct wholly owned subsidiary, Cyborg Acquisition Corporation
recently started the tender offer priced at $35.00 per share for
all outstanding shares of common stock of Ceradyne,
Inc. (CRDN). The agreement to merge was initially
announced by 3M and Ceradyne on October 1, 2012.
The price offered for the shares
has been accepted by the board of directors of Ceradyne with
alacrity, who consider the price to be fair and acceptable to the
shareholders. Ceradyne advised its shareholders to accept the offer
and tender their shares. The tender offer is due to expire at 5:00
p.m., New York City time, on Tuesday, November 27, 2012. The date
maybe extended.
The Offer to Purchase, Letter of
Transmittal and other related materials contain the complete terms
and conditions of the tender offer and filing of the same will be
done by 3M and Cyborg Acquisition Corporation with the SEC on
October 15, 2012. Ceradyne will also file a
Solicitation/Recommendation Statement on Schedule 14D-9 with the
SEC relating to the offer.
The transaction is expected to
close in the fourth quarter of 2012. Following the completion of
the acquisition, Ceradyne will join the 3M Energy and Advanced
Materials Division within 3M’s Industrial and Transportation
Business. The division is engaged in providing valued materials for
lightweight solutions and materials for performance in difficult
conditions to customers in different industries.
Based in Costa Mesa, Calif.,
Ceradyne, is a leader in development and production of advanced
technical ceramics for demanding applications in the automotive,
oil and gas, solar, industrial, electronics and defense industries.
The company operates in the U.S., Canada, China and Germany.
Ceradyne’s annual revenue amounts to approximately $500
million.
3M expects the acquisition to be
$0.05 dilutive to earnings in the first year of completion.
Excluding purchase accounting adjustments and anticipated
integration expenses, 3M estimates the acquisition to be $0.01
accretive to earnings.
3M Company, together with its
subsidiaries, operates as a diversified technology company with
manufacturing operations spread over 60 countries worldwide. It has
more than 35 business units organized into six segments: Consumer
and Office, Display and Graphics, Electro and Communications,
Healthcare, Industrial and Transportation, and Safety, Security and
Protection Services Business. The major competitors of 3M are
Avery Dennison Corporation (AVY) and EI
DuPont de Nemours & Co. (DD).
We continue to maintain a Neutral
rating on 3M Company for the long term and a Zacks #2 Rank (Buy
recommendation) over the next one-to-three months.
AVERY DENNISON (AVY): Free Stock Analysis Report
CERADYNE INC (CRDN): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
3M CO (MMM): Free Stock Analysis Report
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