(FILES) In this file photo taken on September 26, 2010, 3M headquarters is seen in St. Paul, Minnesota. - US industrial products manufacturer 3M announced on April 25, 2019, it will cut 2,000 jobs worldwide, citing weakness in key markets that led to a steep decline in first-quarter sales. 3M, which makes a wide variety of industrial goods and tools as well as everyday items such as Post-It notes, also slashed its full-year profit forecast. (Photo by KAREN BLEIER / AFP)KAREN BLEIER/AFP/Getty Images

3M on Thursday said it would acquire a maker of wound care products for roughly $6.7bn, including net debt, even as the industrial group last month announced plans to shed jobs as part of a restructuring.

The Minnesota-based company will finance the transaction with a combination of available cash and proceeds from the issuance of new debt.

The conglomerate behind everything from Post-it notes to industrial products agreed to buy Acelity and its KCI subsidiaries — which make a broad range of wound care products. 3M is buying the group from a consortium of funds advised by buyout group Apax Partners alongside affiliates of Canada Pension Plan Investment Board (CPPIB) and the Public Sector Pension Investment Board.

Acelity, which has disposed of non-core assets, including the $2.9bn sale of LifeCell to Allergan in 2017, generated 2018 revenues of $1.5bn.

“Acelity is a recognised leading provider of advanced wound care technologies and solutions and an excellent complement to our healthcare business,” said Mike Roman, 3M chief executive.

The consortium took the business then known as Kinetic private in a $6.5bn deal in 2011. It changed its name to Acelity in 2014 and a year later it looked to list. However, shareholders decided against the move due to market conditions at the time, according to a person familiar with the move.

Acelity, which has grown partly through acquisitions, was looking to list again as recently as last month but 3M came up with a competitive offer in the meantime, people with knowledge of the situation said.

Apax is expected to make more than three times its original investment, according to a person familiar with the deal.

3M expects the deal to be dilutive to earnings per share by 35 cents in the first 12 months following the completion of the deal, including transaction costs. Excluding one-time transaction costs, 3M expects the deal to be accretive to earnings per share by 25 cents over the same period.

As a result of the deal, 3M scaled back its share buyback programme to between $1bn to $1.5bn, down from $2bn to $4bn.

3M shares fell 1 per cent to $184 in pre-market trade.

The news of the acquisition comes after 3M last month said it would shed 2,000 jobs globally as part of a restructuring and reduced its full-year earnings guidance. The company recently realigned its portfolio to four business groups from five, in its efforts to drive productivity, reduce costs and boost cash flow.

The transaction, which is subject to regulatory approval, is expected to close in the second half of the year.

Credit Suisse acted as financial adviser to 3M. Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel to 3M.

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