From staff reports
QUAPAW, Okla. —
3M will acquire Ceradyne Inc. in an $860 million deal, the two companies announced this week.
The deal includes Ceradyne’s boron plant in Quapaw, which employs about 115 people. The plant produces enriched boron products for use in nuclear power plant operations for waste containment and radiation absorption. The company sells to customers worldwide.
There was no immediate word from either company on what the deal will mean for the workforce in Quapaw.
A subsidiary of 3M will acquire all outstanding shares of Ceradyne within ten days, after the deal was approved by that company’s board of directors.
Ceradyne, based in California, also has many other operations across the United States, and in China and Germany, and reports annual revenue of about $500 million, the company announced in a statement. The company also makes advanced technical ceramics used in the automotive, oil and gas, solar, industrial, electronics and defense industries.
The transaction is expected to close during the fourth quarter of this year.
Ceradyne bought the boron plant from Eagle-Picher Technologies in 2007 for $69 million.
Chris Holmes, an executive vice president for 3M Industrial and Transportation Business, said in a statement: “By joining 3M, Ceradyne associates will have the opportunity to use the power of 3M’s global reach, culture of commercializing new products and operational discipline to accelerate this platform in serving our customers with highly valued solutions.”
Joel Moskowitz, chief executive officer of Ceradyne said in a statement, “3M is renowned for its innovation, its R&D and its global reach. This is a great fit and I know that advanced ceramics technologies have a remendous future within 3M and can contribute to the development of unique solutions for many demanding applications.”
3M last year reported $30 billion in sale, and employs 84,000 people at operations in more than 65 countries.