Corning Incorporated has signed a deal with 3M to purchase substantially all of 3M’s Communication Markets Division in a cash transaction valued at around $900 million. The acquisition is expected to close during 2018, subject to customary closing conditions and regulatory approval.
Corning’s Optical Communications segment will acquire approximately $400 million in annual sales of high bandwidth and optical fibre products. “Corning leads in optical passive components and solutions. This transaction expands both our global market reach and our high-bandwidth portfolio. It also provides new co-innovation opportunities and enhances our ability to serve customers globally,” said Clark S Kinlin, executive vice president, Corning Optical Communications.
The pending acquisition is part of Corning’s multiyear Strategy and Capital Allocation Framework, which is designed to create significant value for shareholders by focusing the company’s portfolio and using its financial strength. A key component of the framework is the company’s plan to invest approximately $1 billion to $3 billion in acquisitions. When complete, this acquisition will augment Corning’s Optical Communications global market access and expand its broad portfolio of high-bandwidth optical connectors, assemblies, hardware and accessories for Carrier Networks, Enterprise LAN and Data Center solutions.
3M’s Communication Markets Division is headquartered in Austin, Texas, and has a dedicated manufacturing facility in Pontchâteau, France, and operations in Hannover, Germany. The acquisition is subject to consultation or information requirements with relevant works councils, as well as customary closing conditions and regulatory approvals.