In what it described as a ‘great strategic fit’, 3M announced late June that it had entered into a definitive agreement to acquire Capital Safety from KKR for a total enterprise value of US$2.5 billion. That includes ‘the assumption of approximately US$0.7 billion of debt, net of cash acquired.’
‘Capital Safety is a leading global provider of fall protection equipment, one of the fastest-growing safety categories within the global personal protective equipment industry.
‘The personal protective equipment industry is a strategic priority for 3M. Demand for personal protective equipment is rapidly growing, driven by increasing regulatory focus on worker safety across both developed and developing countries,’ said the official announcement.
Capital Safety’s products and solutions include harnesses, lanyards, self-retracting lifelines and engineered systems sold under well-known global brands DBI-SALA and PROTECTA.
‘The company has demonstrated strong and consistent growth with sales increasing at a compound annual growth rate of 10 percent over the past four years. The company’s sales, adjusted to include recent acquisitions on a full-year basis, were approximately US$430 million for its fiscal year ended March 31, 2015.’
3M’s personal safety business, part of 3M’s safety and graphics business group, is a global provider of respiratory and hearing protection solutions that help improve the safety and security of workers. The business also supplies products and solutions in other safety categories such as reflective materials for high-visibility apparel, protective clothing and eyewear, among others.
“Personal safety is a large and strategically important growth business in the 3M portfolio,” said Inge G. Thulin, 3M chairman, president and chief executive officer.
“The acquisition of Capital Safety bolsters our personal safety platform and will build on our fundamental strengths in technology, manufacturing, global capabilities and brand.”