3M Sells Off Communication Cables Business to Corning

3M has agreed to sell "substantially all" of its Communication Markets Division, which manufacturers fiber-optic and copper communication cabling, to Corning Inc. for around $900 million. The business line, based in Austin, TX, employs around 500 people and generates sales of about $400 million annually.

The Communication Markets Division includes the brands xDSL, FTTx and structured cabling solutions. In some countries it also handles telecommunication systems integration services. The 3M operations will join Corning's Optical Communications segment, boosting its high-bandwidth and optical fiber product offerings. Acquired assets include the Austin headquarters, a dedicated manufacturing facility in Pontchâteau, France, and operations in Hannover, Germany.

“Corning leads in optical passive components and solutions. This transaction expands both our global market reach and our high-bandwidth portfolio. It also provides new co-innovation opportunities and enhances our ability to serve customers globally,” said Clark Kinlin, executive vice president, Corning Optical Communications, in a Corning release. “As the industry’s only true end-to-end manufacturer and supplier of optical solutions, we look forward to bringing these two strong organizations together and welcoming a group of outstanding employees.”

Corning said the acquisition is part of a multi-year strategy and capital allocation framework to focus the company's portfolio with investments of $1 billion to $3 billion for acquisitions.

“After completing a thorough strategic review, we believe that this business will be well positioned with Corning,” Ashish Khandpur, executive vice president, 3M's Electronics & Energy Business Group, said in a 3M release. “I want to thank our Communication Markets Division team for their outstanding contributions.”

Subject to closing conditions, the deal is expected to close in 2018.

Corning has been expanding its production capacity for fiber-optic cable, most recently with an expansion of its facilities in Strykow, Poland, to meet rising demand in Europe, the Middle East and Africa.