3M Company (MMM) recently completed the divesture of its Static Control business to Desco Industries, Inc. for an undisclosed amount. Desco is a global provider of Electrostatic Discharge (ESD) control products that are primarily used in the electronics production industry.
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 annual revenues of about $45 million globally.
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 #3 (Hold). Other stocks that look promising in the industry include Ingersoll-Rand Plc (IR), Illinois Tool Works Inc. (ITW) and DXP Enterprises, Inc. (DXPE), each carrying a Zacks Rank #2 (Buy).
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