3M, via Sumitomo 3M, to Acquire Sumitomo Electric Industries Ltd.’s Interest in Sumitomo 3M Ltd.

3M announced that it will acquire, through Sumitomo 3M, Sumitomo Electric Industries Ltd.’s 25% interest in Sumitomo 3M Ltd. for 90 billion Japanese yen (approximately $885 million at current exchange rates). Upon completion of the cash transaction, 3M will own 100% of Sumitomo 3M Ltd. The transaction is expected to close Sept. 1, 2014.

“This investment allows us to gain full control of one of 3M’s most successful subsidiaries,” said Inge G. Thulin, 3M chairman, president and CEO. “It is a strategic acquisition in a business we know well, as we have grown the business profitably for over 50 years.”

Sumitomo 3M Limited was established in 1961 as a joint venture between 3M, Sumitomo Electric Industries Ltd. and NEC Corp. In 2003, 3M acquired NEC’s 25% stake, which increased 3M’s interest to 75%.

“Our Japanese organization is energized by 3M’s increased investment in the business,” said Koichi Mimura, president of Sumitomo 3M. “We are committed to growing the business further in this large and important market.”