Editor's Note: This video was originally published on Oct. 1, 2012. A full transcript appears below

Debra Borchardt:
Jim, 3M bought Ceradyne.

Jim Cramer:
Right.

Debra Borchardt:
Huge premium, 43 percent premium. They're going after a ceramics maker. The ceramics are in cars and the oil and gas business, a little bit different from an Avery Dennison that they've been looking at. What's going on here?

Jim Cramer:
Well, it's interesting. They don't do a lot of military, 3M, and this is very military. 3M is a materials company. In a lot of ways, they like to make new materials. Sometimes they find this unexploited niche of materials down on its luck because it's a defense play. I mean this is body armor. The company is a brilliant scientific company of which one of its forays into different kinds of science is this material that is very hard. I mean I see 3M applying this to other things. This is the 3M equivalent of getting patents and exploiting them.

Debra Borchardt:
That's what I was about to say. It's the equivalent of the tech run on patents. It's intellectual property.

Jim Cramer:
Exactly. Now, my dad used to work for 3M, and I have always been partial to the company because the company is an inventor. So, I think that this is a little different. They're not inventing. They're buying. They've done that from time to time and you mentioned Avery Dennison. But they're in a growth mode and they're not going to let their growth slow down if, internally they're not able to develop. If you take a look at all of their presentations, the sheer number of products that they've developed internally is extraordinary. This jumpstarts some growth. Even though we're conditioned that this is a defense pla,y I wouldn't be surprised if 3M doesn't run this technology through a lot of new areas. It's a very impressive buy.

Debra Borchardt:
It's definitely a long-term vision. Because they're going to get hit a little bit in the short-term, but like you said, if they can mine some of this technology and if they can take this to years and years in the future.

Jim Cramer:
Exactly. I mean look, you've got a great management team. They've historically exploited things much better than you would think and they pay a great dividend. This is one I have never fought. I've always liked it.

Debra Borchardt:
Would you buy them then if they had that quarter where they said we took a hit for buying this company and everybody sells them?

Jim Cramer:
Yeah. I think this stock is an up stock and it's not that expensive. When I saw it do well after they said that our regular goal is now our stretch goal. I'm not saying any stock's immunized but I'm saying that this is a good company to own.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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