Page 10 - Occupational Health & Safety, May 2017
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INDUSTRY UPDATE
www.ohsonline.com
ADVISORY BOARD
Leo J. DeBobes, MA (OH&S), CSP, CHCM, CPEA, CSC, EMT
Stony Brook University Medical Center Stony Brook, NY
Scott Lawson
The Scott Lawson Companies Concord, N.H.
Angelo Pinheiro, CSP, CRSP, CPEA
Senior HES Professional Marathon Oil Company Houston, Texas
William H. Weems, DrPH, CIH
Director, Environmental & Industrial Programs University of Alabama College of Continuing Studies Tuscaloosa, Ala.
Henry Wright, MBA, CFPS
Senior Vice President & Director — Risk Solutions BB&T Insurance Services Inc. Charlotte, N.C.
EMERITUS
Barry R. Weissman, MBA
Green Valley, Ariz.
Business Moves
■ Both companies confirmed March 16 that 3M had entered into a definitive agree- ment to acquire Scott Safety from Johnson Controls for a total enterprise value of $2.0 billion. Scott Safety, based in Monroe, N.C., makes self-contained breathing apparatus (SCBA) systems, gas and flame detection instruments, and other safety devices that complement 3M’s personal safety portfolio.
“Personal safety is a core growth busi- ness within the 3M portfolio,” said Inge G. Thulin, 3M’s chairman, president, and chief executive officer. “This acquisition lever- ages our fundamental strengths in technol- ogy, manufacturing, global capabilities, and brand and builds upon recent portfolio ac- tions within our Safety and Graphics busi- ness to position it for long-term success.”
Scott Safety posted annual revenues in 2016 of approximately $570 million. “Scott Safety is a recognized leader in the safety industry with a portfolio of strong products, brands, and a talented team of dedicated employees,” said Frank Little, executive vice president of the 3M Safety and Graphics Business Group. “Combining 3M’s products, brands, and global capabili- ties in personal protective equipment with Scott Safety’s well-regarded safety prod- ucts will provide a broader array of safety products and solutions, enhancing our rel- evance to customers worldwide.”
3M’s Personal Safety Division provides respiratory, hearing, and fall protection solutions, along with reflective materials for high-visibility apparel, protective cloth- ing, and head, eye, and face protection. On a GAAP reported basis, 3M estimates the acquisition to be $0.10 dilutive to earnings in the first 12 months following completion of the transaction. Excluding purchase ac- counting adjustments and anticipated one- time expenses related to the transaction and integration, 3M estimates the acquisi- tion to be $0.10 accretive to earnings over the same period. The effective enterprise value multiple is approximately 11 times estimated annual adjusted EBITDA for the first 12 months following completion of the transaction, including expected run rate synergies, and the transaction is expected to close in the second half of 2017.
Scott Safety employs approximately 1,500 people worldwide.
nounced that its fire detection and secu- rity services ExecFactor® platform, San Francisco-based Sciens Building Solutions, has acquired Jacksonville, Fla.-based W.W. Gay Fire & Integrated Systems, Inc. In 2015, Huron Capital formed Sciens in part- nership with a former Siemens executive, Terry Heath, to pursue a buy-and-build in- vestment strategy in the fire detection and security services sector. W.W. Gay provides fire detection and fire suppression systems and data/security and electrical services. The company primarily serves the health care, military/government, education/in- stitution, commercial, and industrial/util- ity markets; it will be operated as a division of Sciens. “I have known Terry Heath for many years, as he is a very well-regarded executive in the fire industry,” said Nandu Paryani, who had owned and operated W.W.Gay since 1991 and continues to lead the business locally. “I am excited to work with him and the Huron Capital team as we look to grow W.W. Gay and the Sciens platform.” Heath, the Sciens CEO, said the addition “brings tremendous capabilities to Sciens and will help us strengthen our of- ferings in key areas such as specialty sup- pression and increase our presence in im- portant vertical markets.”
■ Schauenburg International GmbH, headquartered in Mülheim, Germany, acquired OHD, Inc., of Hoover, Ala., on Feb. 1, saying the acquisition strengthens its Electronic Technologies division. OHD (www.ohsuda.com) provides industrial hy- giene and occupational health technology and services, including audiometers, do- simeters, and respirator fit testing equip- ment. Schauenburg, which also owns Sensidyne, LP (www.Sensidyne.com), is a family-owned group of companies that specialize in safety instrumentation, com- munication technologies, plastic process- ing, machining and equipment, and engi- neering products.
“OHD provides an exciting opportu- nity and strategic add-on for our group and will support our efforts as a technology as well as service supplier in industrial health and safety instrumentation,” said Florian G. Schauenburg, CEO of the company. Tim English, VP-general manager and a management partner in the newly formed OHD, LLLP, said that deal “allows us to maintain our operational independence while benefiting from a wealth of manage-
ment experience and exposure to the global business network of the SCHAUENBURG International Group. We are proud of our achievements in occupational health and safety over the last 25 years and feel this is the right choice for the next phase of OHD’s growth in our current markets and beyond.”
■ Toronto-based Medgate, Inc., a leader in cloud-based EH&S risk manage- ment solutions, has acquired IQS, Inc., a North Olmsted, Ohio-based company that provides web-based enterprise qual- ity management software. Medgate said the acquisition “rounds out Medgate’s offering” and came only a few weeks after Medgate’s purchase of environmental software com- pany regAction.
“I am pleased to welcome IQS’ custom- ers and employees to the Medgate family,” said Mark Wallace, Medgate’s president and CEO. “Adding quality to our solution will enable our customers to break down another information silo and gain a broad view of overall operations. Having a single view of all business activities will inform EHS and quality decisions, thereby deliver- ing significant enterprise value.”
On the Move
New Kensington, Pa.-based Bacharach, Inc., a leading manufacturer of refrigerant
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■ Detroit-based Huron Capital an-
10 Occupational Health & Safety | MAY 2017