3M Sells LEAP III Brand To DAC Technologies; No Financial Terms Disclosed
Portfolio Pulse from Benzinga Newsdesk
3M (NYSE:MMM) has sold its LEAP III brand to DAC Technologies, a leader in optical lens manufacturing solutions. The LEAP III brand includes blocking pads used in lens edging by optical labs and retailers. The acquisition, which closed on October 30, 2023, includes an exclusive supply agreement for 3M to provide the base material for the pads. DAC Technologies aims to maintain the quality and performance of the LEAP III brand, leveraging its global distribution network.
November 13, 2023 | 2:02 pm
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3M has divested its LEAP III brand to DAC Technologies, including an exclusive supply agreement to provide base materials for the product.
The sale of the LEAP III brand by 3M to DAC Technologies is a strategic move that could streamline 3M's operations and focus on its core business areas. The exclusive supply agreement ensures ongoing revenue from the base materials, which may offset the impact of the divestiture. However, without financial terms disclosed, it's challenging to assess the deal's materiality to 3M's overall financials. Therefore, the short-term impact on 3M's stock is likely neutral.
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