3M to spend about $885 million to buy remaining stake in Sumitomo subsidiary
3M will take full control of its Sumitomo subsidiary by acquiring the 25 percent of the company that it doesn't already own for $885 million.
The maker of Post-it notes established the subsidiary in 1961 as a joint venture with Sumitomo Electric Industries and NEC Corp. 3M acquired NEC's stake in 2003, increasing its stake to 75 percent.
It would be buying the remaining 25 percent from Sumitomo Electric Industries Ltd.
3M said Wednesday that the deal, valued at 90 billion yen, is for one of its most successful subsidiaries. The business will be known as 3M Japan.
The deal is expected to close Sept. 1. 3M said the acquisition will add about 8 cents per share to earnings during the first 12 months after the closing.
Shares of 3M Co., based in St. Paul, closed at $145.06 on Tuesday and have climbed about 3 percent so far this year.