3M Completes Sale of its Floor Products Business in Western Europe

Rhea-AI Summary

3M (NYSE: MMM) has completed the sale of its floor products business in Western Europe, previously known as Dinac, to Gerflor Group. The transaction is part of 3M's strategic portfolio management, focusing on prioritizing high-value sectors. The sold business generated annual sales of approximately 25 million euros in 2021 and will have a negligible impact on 3M's financial results. About 100 employees from 3M transitioned to Gerflor as part of this deal, which included manufacturing operations located in La Mure, France.

Positive

• Completion of the sale enhances 3M's focus on core segments in the Construction and Home Improvement Markets.
• The divestiture is part of a broader strategy of active portfolio management aimed at maximizing shareholder value.

Negative

• None.

ST. PAUL, Minn., March 2, 2022 /PRNewswire/ -- 3M (NYSE: MMM) today announced that it has completed the sale of its floor products business in Western Europe, formerly known as Dinac, to Gerflor Group. The business was part of 3M's Construction and Home Improvement Markets Division. Gerflor Group is a global leader in the production and distribution of floorings, wall coverings and finishes.

As part of ongoing strategic portfolio management, 3M has decided to sell the business and prioritize other areas within the Construction and Home Improvement Markets Division. The business included floor transition profiles, stair nosing and flexible baseboards for DIY and Pro segments within the retail channel. The business had annual sales in 2021 of approximately 25 million euros and the sale will not have a material impact on 3M's financial results.

3M's active portfolio management strategy is focused on leveraging the strengths of 3M to create the greatest value for customers and delivering strong returns for shareholders. Recent examples of 3M's portfolio management include Health Care acquisitions of Acelity and M*Modal, exits of Drug Delivery Systems and Ballistic Protection businesses, and the recently announced divestiture of the Food Safety business.

The transaction included manufacturing operations located in La Mure, France.

Approximately 100 3M employees transferred to Gerflor upon completion of the sale.

Ernst & Young France acted as financial advisor to 3M.

About 3M
At 3M, we apply science in collaborative ways to improve lives daily as our employees connect with customers all around the world. Learn more about 3M's creative solutions to global challenges at www.3M.com or on Twitter @3M or @3MNews.

3M Media Contact:
Jennifer Ehrlich, 651-592-0132

3M Investor Contacts:
Bruce Jermeland, 651-733-1807
Diane Farrow, 612-202-2449

 

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SOURCE 3M

FAQ

What did 3M announce on March 2, 2022?

On March 2, 2022, 3M announced the completion of the sale of its floor products business in Western Europe to Gerflor Group.

What was the annual sales figure for the sold floor products business?

The sold floor products business had annual sales of approximately 25 million euros in 2021.

How many employees transitioned to Gerflor after the sale?

Approximately 100 3M employees transferred to Gerflor upon completion of the sale.

Will the sale of the floor products business impact 3M's financial results?

The sale will not have a material impact on 3M's financial results.

What strategy is 3M pursuing with this sale?

3M's sale of the floor products business is part of its ongoing strategic portfolio management to prioritize other high-value areas.