3M Expands Aerospace Footprint

3M Co. has agreed to buy MTI PolyFab Inc., a Canadian manufacturer of thermal and acoustic insulation for the aerospace industry for $24 million, in a deal announced Monday.

MTI PolyFab, a unit of Ontario-based MTI Global Inc., has about 130 employees with operations in Canada, Brazil, Germany and a contract manufacturing venture in Mexico.

3M said MTI PolyFab's products will complement those of Aearo Technologies, a 3M subsidary based in Indianapolis whose products include high-performance soundproofing for noise and vibration control in aircraft cabins.

The Maplewood-based giant makes hundreds of products for the aircraft industry, including handheld electricity testers, paint sprayers, tapes, corrosion prevention products and protective flame shields that cover insulation and ductwork inside airplanes. The company is ramping up a new aerospace plant in Poland to meet demand from aerospace customers in Europe and Asia.

3M said it expects the MTI PolyFab acquisition to be completed in the second quarter. MTI PolyFab will be overseen by 3M's aerospace and aircraft maintenance department that is part of the Industrial and Transportation business segment. It's the largest of 3M's six business groups, with sales last year of about $7.1 billion, more than 30 percent of 3M's $23.1 billion in worldwide sales.

3M has said it expects to invest about $1 billion in acquisitions this year. The company recently agreed to acquire a majority stake in A-One, a Japanese company that makes the biggest-selling brand of office and consumer labels in Asia.
 

By SUSAN FEYDER, Star Tribune