3M Enhances Personal Protection Gear With $1.2B Aearo Acquisition

3M (MMM) said Thursday it has agreed to acquire privately-held Aearo Technologies for $1.2B in cash, in an effort to expand its occupational health and environmental safety program. Aearo's hearing protection, eyewear, and fall protection products will supplement 3M's respiratory line to provide industrial and military customers and consumers with a more complete personal protection solution. "Aearo complements and significantly broadens our core safety and personal protection business, a space which is growing fast and of strategic importance to the company," 3M CEO George W. Buckley said (press release). Aearo's hearing and eye protection products include E-A-R, Peltor, AOSafety and SafeWaze. Aearo's current yearly sales are $508 million. 3M said the deal does not change its 2007 guidance and will not likely close until Q1 2008. Lehman (LEH) advised 3M on the transaction. The purchase brings 3M's year-to-date shopping spree up to at least 16 acquisitions. During 3M's Q3 earnings call, Buckley told investors the company, "announced two further acquisitions in the month of September, this makes 15 acquisitions year-to-date, and I wouldn't be surprised if we announced a few more before the year is out." He added, "Our investments in R&D and in acquisitions are clearly paying dividends," (full transcript).

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