3M Sells Optical Fiber Business to Corning for $900 Million

By Allison PrangFeaturesDow Jones Newswires

Corning Inc. said Monday it agreed to buy almost all of 3M Co.'s optical fiber and copper cable business for $900 million in cash.

3M's communications markets division, which is based in Austin, Texas, generates about $400 million a year in sales, the company said. About 500 3M employees will join Corning as part of the deal, which is expected to be completed in 2018.

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"After completing a thorough strategic review, we believe that this business will be well positioned with Corning," Ashish Khandpur, 3M's executive vice president for its electronics and energy business group, said in prepared remarks.

The deal will add to Corning's 2019 per-share earnings by between 7 cents and 9 cents, it said. 3M said it expects to realize a gain of 40 cents a share from the divestiture.

Corning said it plans to spend between $1 billion and $3 billion on acquisitions as part of its multiyear capital-allocation plan.

Shares in Corning rose 0.7% Monday morning, while shares of 3M rose 0.2%.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

December 11, 2017 10:22 ET (15:22 GMT)