3M to Acquire Ceradyne for $860M

by InvestorPlace Staff | October 1, 2012 8:51 am

Office-product firm 3M (NYSE:MMM[1]) announced today that it has reached an agreement to buy ceramics manufacturer Ceradyne (NASDAQ:CRDN[2]) — a move the company says will complement its existing businesses in transportation, energy and defense.

3M will buy Ceradyne for a total of roughly $860 million, valuing the company at $35 per share — a 43% premium to CRDN’s price at Friday’s close.

3M estimates the deal will reduce about 5 cents per share in earnings for the first year after the transaction; excluding costs and one-time items the merger will add 1 cent on an adjusted basis.

Ceradyne’s board of directors has unanimously recommended that CRDN shareholders accept the offer; the offer will be subject to the tender of a majority of Ceradyne’s shares and to certain other customary closing conditions.

The transaction is expected to close during the fourth quarter of this year.

— Kyle Woodley, InvestorPlace Assistant Editor

  1. MMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=MMM
  2. CRDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=CRDN

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