Diversified conglomerate 3M Company MMM recently completed the divesture of its remaining global Library Systems business outside North America for an undisclosed amount. The business was sold to a fund advised by One Equity Partners Capital Advisors L.P., the private investment arm of JPMorgan Chase & Co. JPM.
Earlier in October 2015, 3M sold its North American Library Systems business to One Equity Partners Capital Advisors L.P. The divested businesses include circulation management solutions primarily tailored for library customers with on-premise hardware and software, maintenance and service, and an emerging cloud-based digital lending platform.
3M had created a niche market for itself in this category with over 40 years of experience. Its product portfolio included library security products, automated materials handling systems, and self-service technologies for digital lending that helped libraries to connect with the rapidly evolving customers.
3M Library Systems recorded global sales of approximately $100 million over the last year. The business employed about 100 people, who will join the ranks in OEP post completion of the transaction. The company expects the transaction to have zero impact on its earnings as it is likely to be offset by additional portfolio management actions in the fourth quarter of 2015.
Portfolio management, investment in innovation and business transformation are the three key levers on which 3M intends to focus on to gain a competitive advantage in the industry. 3M also intends to continue investing in capital expenditures and research and development to support organic growth as it aims at a prudent capital structure strategy and increased capital deployment. 3M's global footprint, diversified product portfolio and the ability to penetrate into different markets have been its forte.
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.
3M currently has a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the industry worth reckoning include Compass Diversified Holdings CODI and Swire Pacific Limited SWRAY, both carrying a Zacks Rank #2 (Buy).
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