CUNO bought for $1.35 billion

News

3M announced today that it is to acquire CUNO, a manufacturer of filtration products, for $1.35 billion.

3M

and

CUNO

today entered into an agreement for 3M's acquisition of CUNO for $72 dollars per share, valuing the transaction at approximately $1.35 billion. The transaction includes the assumption of $60 million of existing net debt.

CUNO designs and manufactures filtration products for the separation, clarification, and purification of fluids and gasses for customers in many of the same industries 3M serves, including industrial, health care, consumer, and transportation.

3M said in a statement that CUNO’s sales have increased at a compound annual growth rate of more than nine percent and that CUNO’s earnings per share have grown at a compound annual growth rate greater than 30 percent during the past ten years.

3M plans to fund the transaction with existing cash. The acquisition is expected to be accretive to 3M's earnings in 2006 and does not change the company's 2005 earnings per share guidance.

The acquisition is expected to close in the third quarter subject to regulatory and CUNO shareholder approval and other customary closing conditions.