NEW YORK (TheStreet) -- Shares of 3M (MMM) closed up 0.1% to $159.84 on Tuesday after the technology company said it will acquire Capital Safety from private equity firm KKR & Co. (KKR) for $2.5 billion, according to Reuters.
Capital Safety, a provider of fall protection equipment, sells harness, lanyards and other gear for workers in construction, mining and other industrial sectors.
"Personal safety is a large and strategically important growth business in the 3M portfolio," 3M CEO Inge G. Thulin said.
Acquiring Capital Safety will help 3M's Personal Safety business, which is a provider of respiratory and hearing protection solutions that help improve the safety and security of workers, the companies stated.
Additionally, demand for safety equipment is growing quickly, especially in emerging markets as worker-protection regulations increase and multinational companies grown, Bloomberg noted.
Separately, TheStreet Ratings team rates 3M CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3M CO (MMM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow."