(Adds details, shares)
March 16 3M Co said on Thursday it would
buy Johnson Controls International Plc's safety gear
business, Scott Safety, in deal with an enterprise value of $2
Scott Safety makes respiratory and protective equipment and
other safety products for firefighters, industrial workers,
police squads and the U.S. military.
The Monroe, North Carolina-based business's 2016 revenue was
about $570 million and would complement 3M's personal safety
business, which also manufactures safety devices, 3M said.
Johnson Controls, which manufactures products ranging from
car batteries to heating equipment, had been exploring a sale of
the business, Reuters had reported last week.
Proceeds from the deal are expected to be about $1.8
billion-$1.9 billion, and would be used to repay a portion of
Tyco International Plc's $4.0 billion of merger-related debt,
Johnson Controls said.
Johnson Controls agreed to buy Ireland-based peer Tyco
International in January last year and the merger completed in
3M's financial advisers were Citi and Goldman Sachs while
Centerview Partners provided financial advice to Johnson
Shares of Johnson Controls were up 1.3 percent at $42.49 and
3M's shares edged up 0.6 percent to $192.34 in premarket
(Reporting by Arunima Banerjee in Bengaluru; Editing by Savio
D'Souza and Martina D'Couto)