With the acquisition of Ceradyne, 3M will now spread its reach further into the upstream line of photovoltaics production. The transaction is to be completed by the end of the year with 3M agreeing to pay $35 per share. The board at Ceradyne has recommended that shareholders accept the offer which is 43% higher than the closing price on September 28. The offer will be subject to the tender of a majority of Ceradynes shares and to certain other customary closing conditions.
This large acquisition has been spearheaded by 3M CEO, Inge Thulin who came on board in February this year. He mentioned in September that the company will be looking towards "more sizable" acquisitions than in the past, as Bloomberg reports. Ceradyne has an annual revenue of approximately $500 million.
Ceradyne has crucibles production facilities in Atlanta and Georgia in the U.S. and in Tianjin, China, dedicated to meeting the demands for crucibles for the solar sector. The company is also active in other industries like electronics and defense with facilities in the U.S., Canada, China and Germany.