Deals

3M Expands Medical-Products Unit in Record $4.4 Billion Deal

Post-its maker will reduce share buybacks to conserve cash
Purchase follows first-quarter weakness across businesses

The 3M Co. logo is seen on the inside of a roll of Scotch Blue brand painters tape.

Photographer: Daniel Acker/Bloomberg

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By Rick Clough and Kiel Porter

May 2, 2019 at 11:05 AM UTC

Updated on

May 2, 2019 at 8:27 PM UTC

This article is for subscribers only.

3M Co. agreed to buy medical-products maker Acelity Inc. for about $4.4 billion, its biggest acquisition ever, as new Chief Executive Officer Mike Roman takes a more aggressive approach to expanding the beleaguered company.

The purchase, from a group of funds advised by Apax Partners, adds bandages and surgical-wound care products to one of 3M’s most profitable businesses. The company valued the transaction at $6.73 billion including Acelity’s debt, according to a regulatory filing Thursday that provided details on the deal valuation.