Will the share price go up after the sale?
1 reply
No way share price will go up when they sell. Growth is negative these days at mmm.
Food safety is a $ 315 million business and nobody is going to buy it for 10 x revenue in this business environment.
Usually when 3M sells some business, it is usually for 2 to 2.5 x revenue, not 10 x revenue. When they buy something , usually it is for 4 to 5 x revenue...since organic growth has been in the drain going back 3 years now.
They will sell it for $ 750 million or 1 billion max. and management will call it a WIN...like they always do.