US multinational 3M has agreed a deal to acquire safety equipment provider Capital Safety
Under the terms of the agreement, announced earlier this week, 3M will buy the company from KKR & Co in a deal worth US$2.5bn; the largest in 3M’s 113-year history.
Global demand for safety equipment is steadily rising, fuelled by increasingly stringent worker-protection regulations in emerging market countries, contributing to a 10 per cent annual growth in Capital’s sales over the last four years.
The acquisition of the Minnesota-based company, which specialises in safety equipment for industries such as oil and gas, construction, utilities, renewable energy, transportation, telecommunication and mining, is due to be completed in Q3 2015.
“Personal safety is a large and strategically important growth business in the 3M portfolio,” said 3M CEO Inge G Thulin. “The acquisition of Capital Safety bolsters our personal safety platform and will build on our fundamental strengths in technology, manufacturing, global capabilities and brand.”
Capital Safety produces harnesses, lanyards, self-retracting lifelines and engineered systems sold under the DBI-SALA and PROTECTA brands.