Oct 1, 2012

3M to Buy Ceramic Products Maker Ceradyne in $860 Million Deal



10/1/2012 8:27 AM ET (RTTNews) -Diversified technology company 3M Co. (MMM:Quote) agreed Monday to acquire advanced ceramic products maker Ceradyne, Inc. (CRDN:Quote) for $35.00 per share in an all-cash deal valued at about $860 million. The deal, primarily subject to tendering of a majority of Ceradyne shares, is expected to be completed in the fourth quarter of this year.

Category: General
Posted by: MAEDS
10/1/2012 8:27 AM ET (RTTNews) -Diversified technology company 3M Co. (MMM:Quote) agreed Monday to acquire advanced ceramic products maker Ceradyne, Inc. (CRDN:Quote) for $35.00 per share in an all-cash deal valued at about $860 million. The deal, primarily subject to tendering of a majority of Ceradyne shares, is expected to be completed in the fourth quarter of this year. .
"Ceradyne is an excellent complement to our existing businesses in transportation, energy markets and defense. By joining '3M,Ceradyne associates will have the opportunity to use the power of 3M's global reach, culture of commercializing new products and operational discipline to accelerate this platform in serving our customers with highly valued solutions," 3M said in a statement. .
Ceradyne is a vertically integrated developer and manufacturer of advanced ceramic components and systems for solar, industrial, defense, nuclear power, oil and gas, el.ectronic, automotive/transportation and medical markets. It generates annual revenues of about $500 million.
The deal will broaden 3M's Ceramic product portfolio. The offer price of $35.00 per·share represents a 45 percent premium over Ceradyne's closing share price of $24.43 on Friday. The deal is valued atabout $670 million net of cash, cash equivale.nts, short-term investments and assumed debt.
Following the announcement, C'eradyne shares-are soaring nearly 43 percent in early deals in a bid to reach the offer price.
The deal has been unanimous]y recommended by the Board of Directors of Ceradyne for the stockholders -accept the offer. The deal will see a subsidiary of 3M commencing a tender offer to acquire all outstanding shares of Ceradyne within the ,next ten business days.

10/1/2012 8:27 AM ET
(RTTNews) -MMM closed Friday's regular trading session~ at $92.42, down $0.05 on a volume of 2.56 million shares, lower than the three~month average volume of 2.87 milJion shares, while CRDN closed at $23.43, unchanged on a volume of 83,200 shares.

by RTT Staff Writer