How Will 3M’s Strategy Of Acquisitions To Drive Growth Pan Out In The Future?

3M (NYSE:MMM) has been very active on the M&A front recently, having made significant acquisitions such as Capital Safety, Polypore’s Separations Media business, and Ivera. In 2014, Inge Thulin, chief executive of 3M, stated a desire to be involved in more big-ticket acquisitions, for prices exceeding $1 billion. The company has actively used acquisitions to drive organic growth and create value for its customers and shareholders. The company undertakes an aggressive review process to determine how the acquisition creates value, how it creates a sustainable and accretive end market growth, and how the company can capture cost and sales synergies quickly and effectively. As a result of such actions, 3M expects its acquisitions to add ~1% on average to its GAAP EPS during 2016-2020.

3M has been involved in five key deals since 2013. These include:

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