March 19 (Reuters) - 3M will spin off its Scott Safety business and team up with Bain Capital to buy Madison Fire & Rescue for $1.95 billion, combining the two to create a fire and safety joint venture that will expand the industrial giant's safety portfolio.
3M will own 50.1% of the new company and Bain Capital the remaining 49.9%, the company said on Thursday.
3M has been focused on streamlining its businesses and expanding margins over the last few years, spinning off its healthcare business into a separate company called Solventum in 2024.
Upon completion of the latest deal, 3M will receive $700 million in cash proceeds for Scott Safety, which makes specialized portable air supply devices used by firefighters and first responders, the company said.
Madison Fire & Rescue, a unit of privately held Madison Industries, makes fire suppression products and rescue equipment, including high-pressure portable fire pumps used by wildland firefighters and battery-powered rescue tools.
"This strategic transaction broadens 3M's safety portfolio," said William Brown, 3M's Chairman and CEO, adding that the expanded market reach would position the company to enhance margins and generate strong free cash flow.
3M's expertise in the safety industry and Bain Capital's capability to integrate businesses and drive synergies make it an "ideal partnership," the company added.
The deal is expected to close in the second half of 2026.
Reporting by Aishwarya Jain in Bengaluru; Editing by Jonathan Ananda
Source: Reuters