3M to Acquire Capital Safety
3M Co., North Mankato, Minn., has entered into an agreement to acquire Capital Safety, a Bloomington, Minnesota-based provider of fall protection equipment, from KKR for a total of $2.5 billion.
According to an official statement from Capital Safety, the acquisition is part of 3M's priority to include personal protective equipment to its Safety and Graphics Business Group, which provides respiratory and hearing protection products, reflective materials, and protective clothing and eyewear.
Capital Safety's products include harnesses, lanyards, self-retracting lifelines. The company has an annual growth rate of 10 percent over the past four years, with approximately $430 million in sales for its fiscal year ended March 31, 2015.
"Personal safety is a large and strategically important growth business in the 3M portfolio," said Inge G. Thulin, 3M chairman, president and CEO, in the statement. "The acquisition of Capital Safety bolsters our personal safety platform and will build on our fundamental strengths in technology, manufacturing, global capabilities and brand."
The transaction is expected to close in the third quarter, and 3M will finance the transaction with existing cash.
"This is a great strategic fit and provides Capital Safety and its employees with a strong platform for future growth," Stephen Oswald, CEO of Capital Safety, said in the statement. "Each company also highly values innovation, and this will enable us to drive further product development and provide a broader array of solutions to both Capital Safety and 3M customers."