3M to acquire ceramic component maker Ceradyne for $847 million
01 Oct 2012
US multinational 3M today said that it will buy ceramic component maker Ceradyne Inc for about $847 million in order to expand its advanced materials division.
3M, which was formerly known as the Minnesota Mining and Manufacturing Co, is offering $35 per share, representing a premium of about 43 per cent to Ceradyne's closing price on 28 September.
The agreement provides for a subsidiary of 3M to commence a tender offer to purchase all outstanding shares of Ceradyne within 10 business days, which is subject to a majority of Ceradyne's shares being tendered and regulatory approval.
The board of directors of Ceradyne has unanimously recommended that shareholders accept the offer, which is expected to close during the fourth quarter of this year.
Founded in 1967, Ceradyne has grown by diversifying its product lines created by the increasing demand for better materials performance.
The Costa Mesa, California-based company develops, manufactures and markets advanced technical ceramic products and components for the automotive, oil and gas, solar, industrial, electronics and defense industries.
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