Brief - The Hustle

Gettin’ sticky wit it: Big tape brand 3M buys big bandage brand Acelity in a $6.7B deal

Written by Wes Schlagenhauf | Jun 30, 2020 9:28:05 AM

Office supply giant 3M — AKA the official sponsor of the 9-to-5 grind — has agreed to buy Acelity, a San Antonio-based wound-care products company (bandages, etc.), for a total enterprise value of about $6.7B.

3M is more than tape and sticky notes

When you think of 3M, you think Scotch Tape and Post-It notes. But the company’s health-care wing accounts for 18% of its $32B in annual revenue.

With revenue of almost $1.5B in 2018 and EBITDA of $441m, Acelity is expected to complement 3M’s health-care business nicely, as the St. Paul, MN, operation aims to have its health-care segment generate annual revenue of $7B.