Mar 23 2007
3M and E Wood Holdings PLC announced today an offer to acquire the entire issued and to be issued share capital of E Wood Holdings PLC, a North Yorkshire, UK-based manufacturer of high performance protective coatings for oil, gas, water, rail and automotive industries. The board of E Wood has recommended the offer to E Wood shareholders.
The offer values E Wood shares at approximately £40.17 million, or $78 million. 3M has offered 323 pence, approximately $6.28 per E Wood share. The transaction is expected to close in April, subject to customary closing conditions, regulatory approvals, and obtaining the requisite E Wood shareholder acceptances.
E Wood’s expertise in liquids technologies for new pipes and rehabilitation coatings for existing pipes in oil, gas and water markets complements 3M’s core corrosion protection product offering of external powder coatings for new oil and gas pipelines. This acquisition provides 3M enhanced access to key markets, including the rehabilitation of existing oil and gas pipelines, and the protection and rehabilitation of water pipelines and infrastructure.
“The combination of 3M’s corrosion protection technologies and global presence with E Wood’s strong product line of specialty coatings for industrial markets positions 3M as the premier source of protective solutions for oil, gas and water infrastructure,” said Richard Scott, general manager, 3M Corrosion Protection Products.
E Wood sells high performance coatings for use in the oil, gas, water, rail and automotive industries under the Copon brand. Its Thortex and Thistlebond brands include a range of industrial maintenance products for the long-term protection of buildings, structures and machinery equipment operating in industrial and marine environments.
“We believe that joining with 3M with its strong resources and internationally admired technical focus, enables the business to minimize the risks and grow the opportunities more quickly and assuredly than we could on our own,” said Chris McDonnell, CEO, E Wood.