Here’s Why Traders Are Watching AXT Inc, Barrick Gold, 3M, and More Today

Deal activity in the conglomerate sector is alive and well as Johnson Controls International plc Ordinary Share (NYSE:JCI) has agreed to sell its Scott Safety business to 3M Co (NYSE:MMM) for an enterprise value of $2 billion. The acquisition is expected to be accretive on an adjusted basis for 3M by around 10 cents per share in the first 12 months after deal close. On a GAAP basis, the deal will likely dilute earnings by the same amount for 3M over the same period. By doing the deal, Johnson Controls is getting around 13 times TTM EBITDA for the business and should get $1.8-$1.9 billion in net cash when all is said and done. Johnson management plans to use the funds to repay debt. 37 and 48 funds that Insider Monkey tracks were long 3M Co (NYSE:MMM) and Johnson Controls International plc Ordinary Share (NYSE:JCI) at the end of Q4.

Disclosure:None