3M is a diversified technology company with worldwide exposure to the health care, safety, industrial, telecommunications, electronics, security and protection services and transportation markets.
3M Acquires Patient Warming Products Manufacturer Arizant For $810M
Health product maker 3M (NYSE:MMM) has agreed to acquire Arizant, a Minnesota-based manufacturer of patient warming solutions in surgical settings, for $810 million in cash.
Because anesthetized patients can’t regulate their own body temperature, Arizant products help maintain normal body temperature in surgical patients in order to prevent hypothermia.
The company’s product line includes its Bair Paws patient warming gown and its Ranger blood and fluid warming systems.
Arizant currently employs 375 people globally and the company's sales for 2010 are expected to be approximately $200 million.
"Patient warming is a highly strategic adjacency for our business and integral to infection prevention," said president and general manager of the 3M infection prevention division Debra Rectenwald.
The acquisition is expected to expand 3M's infection prevention offerings and help drive growth internationally, as well as provide a platform of new wound care technologies.
3M's infection prevention segment helps hospitals reduce healthcare-associated infections. It produces sterilization and monitoring products, as well as products for hand hygiene, pre-operative preps, and surgical drapes.
On a non-adjusted basis, 3M estimates the acquisition to be $0.03 dilutive to earnings for the 12 month period following the close of the transaction.
The company expects the acquisition to have no effect on earnings for the same period after adjusting for integration expenses and the effects of purchase accounting.
The deal is expected to close in the fourth quarter.
