What 3M's Latest Deal Means to Investors
It's no secret that 3M (NYSE: MMM) needs management action to improve performance. Growth has been hard to come by in recent years, and the company's earnings margins have disappointed. With this in mind, the announcement of a deal to combine its food safety business with Neogen Corp (NASDAQ: NEOG) grabs the eye. But what does it mean for investors and the investment thesis? Here's the lowdown.
3M agreed to combine its food safety operations with Neogen in a deal to create a company with $1 billion in revenue in its first full year. 3M will separate its food safety business and combine it with Neogen in a tax-free "Reserve Morris Trust" transaction. The details of the deal:
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Source Fool.com
