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3M Pulls Out of Telecoms and Fiber Optics Business

Posted on 6/27/2018 7:41:00 AM By ASC
  

3M, best known for its innovative adhesives and tapes, has announced that it will sell its fiber optics and telecoms division to Corning Inc. The division also includes copper passive connectivity solutions and structured cabling. The transaction is not yet finalized but is mooted to take place at the end of 2018.

The value of the transaction is believed to be in the region of $30 million,and annual sales for the division are recorded at $400 million. However, the proceeds of the sale will benefit shareholders with earnings per share estimated at 40 to 45 US cents.

The company says that the transaction is part of its strategic drive to divest itself of operations that it sees as falling outside its core business area. This is in line with recent transactions spanning the last three years, and all of them have involved business units that fall outside of its central mission and growth areas.

The company plans to concentrate its efforts on high growth areas including auto electrification, safety, graphics, and respiratory health.

 



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