Johnson Controls completes sale of Scott Safety business to 3M for $2 billion

Freeman Staff

Oct. 5, 2017

MILWAUKEE — The sale of Scott Safety by Johnson Controls has been completed.

The transaction with purchaser 3M was worth about $2 billion, according to the company announcement. Scott Safety is a leader in high performance respiratory protection, gas and flame detection, thermal imaging and other critical products and is expected to generate sales of approximately $575 million and earnings before interest, taxes, depreciation and amortization of approximately $160 million in fiscal 2017.

According to the announcement, net cash proceeds from the transaction were $1.9 billion, and will be used to repay a portion of Tyco International Holding Sarl’s $4 billion of merger related debt. 

For fiscal 2018, dilution related to the sale of Scott Safety is expected to be fully offset by lower net financing charges, a lower effective tax rate resulting from the transaction, as well as the benefit of share repurchases completed in fiscal 2017.