3M (NYSE:MMM) has entered into agreements related to the sale of substantially all of its Communication Markets Division to Corning (NYSE:GLW) for $900 million, subject to closing and other adjustments.
The business consists of optical fiber and copper passive connectivity solutions for the telecommunications industry including 3M's xDSL, FTTx, and structured cabling solutions and, in certain countries, telecommunications system integration services. The business has annual global sales of approximately $400 million.
"After completing a thorough strategic review, we believe that this business will be well-positioned with Corning," said Ashish Khandpur, executive vice president, Electronics & Energy Business Group. "I want to thank our Communication Markets Division team for their outstanding contributions."
The sale, which is subject to consultation or information requirements with relevant works councils and to customary closing conditions and regulatory approvals, is expected to be completed in 2018. Approximately 500 3M employees are expected to join Corning upon completion of the transaction.