ST. PAUL, MN — 3M announced Thursday that it has entered into an agreement to sell its electronic monitoring business to an affiliate of Apax Partners, a global private equity advisory firm, for $200 million, subject to closing and other adjustments.
3M’s business, with annual sales of approximately $95 million, is a provider of electronic monitoring technologies, serving hundreds of correctional and law enforcement agencies around the world.
“This divestiture is one of several actions we have taken to improve our portfolio,” said John Riccardi, vice president and general manager, Transportation Safety Division. “We are focusing on the rapidly changing trends in transportation safety and mobility, which include the connected roadways of the future.”
For almost 80 years, 3M has pioneered industry-leading solutions to improve road safety and mobility. The Transportation Safety Division, formerly known as the Traffic Safety and Security Division, supplies materials and solutions including retroreflective sign sheeting, pavement marking, temporary traffic control, vehicle registration and conspicuity.
Approximately 265 3M employees who support the electronic monitoring business are expected to transfer in connection with the sale.
The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions, regulatory approvals and consultation or information requirements with relevant works councils.
Upon completion of this transaction, 3M expects to record a gain of approximately $0.15 per share from this divestiture.