3M sells European pharmaceuticals business to Swedish speciality pharmaceuticals company Meda AB

Nordic Business Report, Nov 9, 2006

NORDIC BUSINESS REPORT-9 November 2006-3M sells European pharmaceuticals business to Swedish speciality pharmaceuticals company Meda AB(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

US-based global technology group 3M (NYSE: MMM) announced on Thursday (9 November) that it has agreed to sell its European pharmaceuticals business to Swedish speciality pharmaceuticals company Meda AB in a USD857m deal.

The deal is part of a series of transactions in which 3M divests its entire global branded pharmaceuticals business for a total of USD2.1bn.

3M's European pharmaceuticals division has some 330 employees and annual sales of some USD280m.

According to Meda the acquisition will significantly strengthen its position on the main pharmaceutical markets in Europe. The deal will expand its product portfolio with new products, including Aldara, which is used in the treatment of skin cancer. The acquisition will also strengthen Meda's sales organisation and increase profitability through synergy effects.

Meda, headquartered in Solna, Sweden, has subsidiaries in more than 20 European countries. The company reported sales of SEK3.9bn in the first nine months of 2006. Meda is listed on the Nordic Exchange in Stockholm.

One British pound (GBP) is worth approximately 1.86 US dollars (USD). One British pound (GBP) is worth approximately 13.70 Swedish kronor (SEK).

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