3M set to close largest deal in its history with Acelity Inc. acquisition

Minnesota-based 3M announced that it is acquiring Texas-based medical device company Acelity Inc. and its subsidiaries. The deal is valued at approximately $4.3 billion—the largest in 3M’s history. Acelity specializes in advanced wound care technology and solutions.

This deal, which broadens 3M’s presence in the healthcare space, comes only four months after 3M acquired M*Modal’s technology business, which helped 3M expand its health information systems business. However, 3M’s record-breaking deal comes at a delicate time. 3M announced only a week ago that 2,000 jobs would be cut following a sales drop of 5 percent in its first-quarter, which was attributed to costs associated with ongoing environmental litigation.

While all of 3M’s other business units were down during the first-quarter, its healthcare division was up 3 percent. 3M has indicated it is optimistic about this acquisition’s long-term benefits as the company looks to continue its growth in the healthcare sector. The transaction is anticipated to close during the latter half of 2019 and will be financed through both cash and debt.

Mergers and acquisitions, both large and small, require diligent planning. Many areas of law come into play with such deals, particularly tax and corporate law. At Wilkerson & Hegna we offer a broad range of business services, including handling mergers and acquisitions. Our attorneys are prepared to guide you through your transaction with everything from negotiating the terms of the agreement, due diligence, and closing. 

Originally published at: http://tcbmag.com/news/articles/2019/may/3m-acquiring-texas-based-medical-device-co-acelity