3M set to acquire Winterthur Technologies

Switzerland-headquartered Winterthur Technologies is an abrasive products specialist that takes in the Slip Naxos, Rappold and Wendt product brands. The 3M notice says that "Winterthur participates in the more than $14 billion abrasives market, which is projected to grow at a rate of greater than 4 per cent per year. Demand for hard-to-grind and high precision materials is fuelling the need for improved grinding and finishing processes". Winterthur employs approximately 1,300 people, with first six months 2010 sales of $114 million, up more than 30 per cent over the same period last year. With $23 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 65 countries. This acquisition will, it is said, enable 3M to enhance and extend its existing product line, and strengthen its activities in the specialised fields of grinding wheels for high precision surface finishing, large size cut-off wheels, as well as system solutions for grinding hard materials, steel components and glass. It will also give Winterthur a global presence, greater marketing power, a broader product range, a wider system offering for sophisticated industrial grinding processes, and accelerated product development. 3M is offering CHF62.00 (USD $63.56) per share, by way of a public tender offer, with the proposed transaction having an aggregate value of approximately $448 million. The chairman of Winterthur has entered into an irrevocable undertaking with 3M to tender his 14 per cent of the shares in Winterthur. The offer is conditional upon a tendering of 66.67 per cent of the shares of Winterthur and satisfying certain other customary closing conditions and regulatory approvals