3M Sells Static Control Business to Offload Non-Core Unit - Analyst Blog

3M Company (MMM) recently announced its decision to sell static control business to Desco Industries, Inc., a global provider of Electrostatic Discharge (ESD) control products used in the electronics production industry, for an undisclosed amount. The transaction is expected to close during the first quarter of 2015.
    
3M's static control business offers products and solutions that help prevent, detect and protect against ESD events. This purchase will further expand Desco's footprint in the growing ESD industry as it continues to develop and market high-quality ESD control solutions. 3M's Static Control business has global revenues of about $45 million annually. Post-divesture, substantially all of 3M's employees are expected to be transferred to Desco.

On the other hand, by divesting this business, 3M intends to concentrate more on its core operations. Portfolio management, investment in innovation and business transformation are the three key levers on which 3M intends to focus moving forward. 3M remains actively focused on seeking opportunities to optimize its portfolio by selectively divesting its businesses and gradually shifting focus to high-growth markets.

3M, together with its subsidiaries, operates as a diversified technology company with manufacturing operations spread over 70 countries. The company aims to deliver innovative security solutions to businesses and governments worldwide, thus ensuring the security of people and documents.

Moving ahead, 3M continues to exploit dynamic growth opportunities in a broad range of sectors with its flexible product lines, ensuring a continually expanding global footprint.
    
3M currently has a Zacks Rank #2 (Buy). Other stocks that look promising in the industry include Federal Signal Corp (FSS) carrying a Zacks Rank #1 (Strong Buy), and Carlisle Companies Inc. (CSL) and EnPro Industries, Inc. (NPO), both carrying a Zacks Rank #2 (Buy).