Credit Suisse Comments On 3M Acquisition Of Winterthur

3M MMM announced that it was acquiring Winterthur Technologies through a public tender offer for CHF $62.00/share, or $448 mil and close to a 7% premium to its previous closing price. Winterthur is a leading player in the $14+ bil global abrasives market, providing abrasive grinding wheels and grinding machine tools to several industries including the cutting tool, automotive, aircraft and steel markets. The acquisition will bolster 3M's Abrasive Systems Division by adding to their surface modification offerings. 3M's Abrasive Systems Division currently provides coated abrasives, non-woven abrasives and wheel products, rotary peening products, and related accessories. 3M believes this acquisition, with its bonded-abrasive focused products, provides them with a better platform to serve its industrial, transportation OEM, metal fabrication, plating/polishing, and furniture customers in a wider set of geographies. Credit Suisse has a Neutral rating and $97 PT on 3M MMM closed Monday at $86.88