3M and Ceradyne revealed that they have entered a definitive agreement, which will see 3M buy Ceradyne for US$35 per share. The transaction holds an aggregate value of nearly US$860 million, or US$670 million net of cash, cash equivalents, short-term investments and debt acquired. Ceradyne, a major producer of crucibles used in the production of polysilicon chunks for multicrystalline ingots and then wafers, will join the 3M Energy Advanced Materials Division.
3M noted that the agreement with Ceradyne holds an arrangement for a subsidiary of 3M to start a tender offer to purchase all outstanding shares of Ceradyne within ten business days. The companies advised that Ceradyne’ s board has collectively recommended that the stockholders of the company accept the offer, which is anticipated to close during Q4 2012.
3M Industrial and Transportation Business Executive Vice President Chris Holmes said, “Ceradyne is a strong company with a great reputation, world-class technology in advanced ceramics, and leadership positions in the markets it serves. Ceradyne is an excellent complement to our existing businesses in transportation, energy markets and defense. By joining 3M, Ceradyne associates will have the opportunity to use the power of 3M’s global reach, culture of commercializing new products and operational discipline to accelerate this platform in serving our customers with highly valued solutions.”