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60
Goodwill resulting from business combinations is largely attributable to the existing workforce of the acquired businesses
and synergies expected to arise after 3M’s acquisition of these businesses. In-process research and development
associated with CodeRyte, Inc. is reflected in the preceding 2012 table as purchased indefinite-lived intangible assets. Pro
forma information related to acquisitions was not included because the impact on the Company’s consolidated results of
operations was not considered to be material.
In addition to business combinations, 3M periodically acquires certain tangible and/or intangible assets and purchases
interests in certain enterprises that do not otherwise qualify for accounting as business combinations. These transactions
are largely reflected as additional asset purchase and investment activity.
2013 divestitures:
In June 2013, 3M (Consumer Business) completed the sale of its Scientific Anglers and Ross Reels businesses to The
Orvis Company, Inc. based in Manchester, Vermont.
2012 acquisitions:
During 2012, 3M completed three business combinations. The purchase price paid for these business combinations (net
of cash acquired) and the impact of other matters (net) during 2012 aggregated to $1.046 billion.
(1) In April 2012, 3M (Health Care Business) purchased all of the outstanding shares of CodeRyte, Inc., an industry leader
in clinical natural processing technology and computer-assisted coding solutions for healthcare outpatient providers,
which is headquartered in Bethesda, Maryland.
(2) In September 2012, 3M (Safety and Graphics Business) purchased the net assets of Federal Signal Technologies
Group from Federal Signal Corp., for a total purchase price of approximately $104 million. This business focuses on
electronic toll collection and parking management hardware and software services, with primary facilities spread
throughout the United States and in the U.K.
(3) In November 2012, 3M (Industrial Business) purchased all of the outstanding shares of Ceradyne, Inc. (Ceradyne) for
$798 million, net of cash acquired. The net assets acquired in this transaction included $250 million of marketable
securities and $93 million of debt, as indicated in the preceding 2012 table. Ceradyne, headquartered in Costa Mesa,
California, is involved in the development and production of advanced technical ceramics for demanding applications in
the automotive, oil and gas, solar, industrial, electronics and defense industries.
Purchased identifiable finite-lived intangible assets related to acquisition activity in 2012 totaled $213 million. The
associated finite-lived intangible assets acquired in 2012 will be amortized generally on a straight-line basis over a
weighted-average life of 12 years (lives ranging from two to 20 years). Acquired in-process research and development
and identifiable intangible assets for which significant assumed renewals or extensions of underlying arrangements
impacted the determination of their useful lives were not material.
2011 acquisitions:
During 2011, 3M completed nine business combinations. The purchase price paid for these business combinations (net of
cash acquired) and the impact of other matters (net) during 2011 aggregated to $649 million.
(1) In January 2011, 3M (Industrial Business) purchased certain assets of Nida-Core Corp., a manufacturer of structural
honeycomb core and fiber-reinforced foam core materials based in Port St. Lucie, Florida.
(2) In February 2011, 3M (Industrial Business) announced that it completed its acquisition of all of the outstanding shares
of Alpha Beta Enterprise Co. Ltd., a manufacturer of box sealing tape and masking tape headquartered in Taipei, Taiwan.
(3) In February 2011, 3M (Consumer Business) purchased all of the outstanding shares of Hybrivet Systems Inc., a
provider of instant-read products to detect lead and other contaminants and toxins, which is based in Natick,
Massachusetts.
(4) In early March 2011, 3M (Industrial Business) acquired a controlling interest in Winterthur via completion of a public
tender offer. Winterthur, based in Zug, Switzerland, is a leading global supplier of precision grinding technology serving
customers in the area of hard-to-grind precision applications in industrial, automotive, aircraft and cutting tools. As of the
settlement date of the tendered shares (the business acquisition date), 3M owned approximately 86 percent of Winterthur