3M Co. (NYSE: MMM) announced that it has completed the sale of assets of its North American Library Systems business to One Equity Partners Capital Advisors L.P. (OEP). 3M also announced that it has entered into agreements for OEP to purchase the assets of its remaining global Library Systems business.
3M Library Systems business delivers circulation management solutions to library customers with on-premise hardware and software, maintenance and service, and an emerging cloud-based digital lending platform.
For 40 years, the business has delivered library security products, automated materials handling systems, and self-service technologies, both digital and library-based. 3M's digital lending, security, and productivity solutions help libraries connect with the diverse and rapidly evolving communities they serve. The business posted global sales over the last 12 months of approximately $100 million.
"After a thorough strategic review, we have decided to exit the Library Systems business, and focus on our core businesses such as reflective traffic safety and vehicle identification solutions, and our public security identification and monitoring portfolio," said John Riccardi, vice president and general manager, 3M Traffic Safety and Security Division.
The business includes a system that enables library patrons to check out books at a self-serve kiosk as well as a cloud-based lending service. This system gives patrons easy access to a huge array of digital books at their local library that can be downloaded to a tablet, smartphone or personal computer. The business also provides RFID (radio frequency identification) technology that reads information stored on tiny tags affixed to books and other circulating materials, which enables a variety of circulation, inventory, security and customer service functions to be automated.
"As a single source provider for tech-enabled library services, 3M's Library Systems will allow us to deepen our presence in the education and library sector and broaden our product offerings in end-to-end automation solutions for public, private and academic libraries," said Dr. Jörg Zirener, Partner, OEP. "OEP is committed to investing in and growing this business, so that the industry will continue to benefit from it presence and innovation in the library market."
The remaining sale of assets is expected to be completed in the fourth quarter of 2015 subject to customary closing conditions and consultation or information requirements with relevant works councils. When both transactions are closed, approximately 100 3M employees are expected to join OEP.
3M expects the earnings impact from the transactions to be offset by additional portfolio management actions in the fourth quarter of 2015.