3M to buy Scott Safety for $2 billion
3M has announced the decision to buy Scott Safety for $2 billion, thrusting the company to the forefront of the personal protective equipment (PPE) market.
"3M's acquisition of Scott Safety propels it to the top spot in the PPE industry. The smart purchase adds Self Contained Breathing Apparatus (SCBA) and Gas Detection to 3M's portfolio,” said Sanjiv Bhaskar, Frost & Sullivan Vice President of Research - Visionary Science. “The smart purchase adds Self Contained Breathing Apparatus (SCBA) and Gas Detection to 3M's portfolio. It allows for 3M to expand or strengthen its offerings to a large number of industry verticals like mining, oil and gas, and water and waste water treatment. In addition it also provides 3M the opportunity to enter the lucrative firefighting market where Scott enjoys a good reputation and great brand recognition. This recent acquisition and the acquisition of Capital Safety in 2015 adds nearly $1 billion to the Personal Safety Division's revenues.
“Globally PPE is a highly fragmented market that is constantly under price pressure due to generic and private label products. This acquisition provides 3M an opportunity to offer products that are highly technical and somewhat insulated from low cost clones."
Source: Frost & Sullivan, a Growth Partnership Company that provides market research and consultative services to a wide range of industries, among other offerings.