This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3M Buys Arizant for $810 Million

NEW YORK ( TheStreet) -- 3M (MMM - Get Report) said Thursday that it has agreed to buy Arizant, a maker of surgical patient temperature management systems, for $810 million in cash as the conglomerate continues expands its infection prevention offerings and continues to drive its growth internationally.

On a GAAP reported basis, 3M estimates the acquisition to be 3 cents dilutive to earnings in the first 12 months following the completion of the transaction. Excluding integration expenses and certain accounting adjustments, 3M estimates the acquisition to be neutral to earnings over the same period.

First year EBITDA (earnings before interest, taxes, depreciation and amortization), excluding purchase accounting and integration costs, is expected to be about 35%-to-sales.

The transaction is expected to be completed in the fourth quarter.

Arizant employs 375 people worldwide. Its sales for 2010 are expected to be about $200 million.

The company, which introduced the Bair Hugger therapy in 1987, makes products that help maintain normal body temperature in more than 20 million surgical patients annually to help prevent surgical site infections and other serious complications tied to surgical hypothermia.

3M estimates that the global opportunity for patient warming is about $1 billion, with the forced-air warming category expected to grow at about 10% a year.

Arizant is majority-owned by New York-based private equity firm Court Square Capital.

Shares of 3M stock are up 0.9% to $83.46 in late morning trading.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to:

Get more stock ideas and investing advice on our sister site,

Follow on Twitter and become a fan on Facebook.

Follow Andrea Tse on Twitter and become a fan on Facebook.
Copyright 2010 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MMM $167.16 -0.48%
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs