ST. PAUL, Minn., and MERIDEN, Conn. - 3M and CUNO Inc. announced that they have entered into a definitive agreement for 3M's acquisition of CUNO in an all cash merger for $72 per share, valuing the transaction at approximately $1.35 billion including the assumption of $60 million of existing net debt. CUNO is a leader in the design, manufacture, and marketing of a line of filtration products for the separation, clarification, and purification of fluids and gases.

"Liquid filtration demand is growing rapidly, driven by critical customer needs for enhanced liquid separation and pure water," said Harold Wiens, executive vice president, 3M Industrial Business. "Our current air filtration business based upon our separation and filtration technologies totals well over $1 billion. We see multiple opportunities to take advantage of the complementary positions of the two companies, and believe that combining 3M's technology and global presence with CUNO's large and expanding installed base and strong product portfolio will enable us to achieve significant revenue and cost synergies."

CUNO provides liquid filtration solutions to customers in many of the same industries 3M serves, including industrial, health care, consumer, and transportation.

3M filtration products include Filtrete brand residential and commercial air filters, and Empore brand filtration products used in the health care market.

"These two great companies have complementary sets of filtration products and the opportunity to bring an even wider range of innovative filtration solutions more effectively to customers around the world," said W. James McNerney Jr., 3M chairman and CEO.

3M plans to fund the transaction with existing cash. The acquisition is expected to be accretive to 3M's earnings in 2006 and does not change the company's 2005 earnings per share guidance.

Publication date: 06/06/2005