Moody's: 3M purchase positive

Moody's Investors Service said that 3M Co.'s announcement of an agreement to acquire the Office and Consumer Products business of Avery Dennison Corp. for $550 million in cash will incrementally benefit 3M's credit profile but not affect its rating.

Although the transaction will use a portion of the company's liquidity and dilute its operating margin percentage, Moody's said 3M will gain additional revenues, earnings and cash flows in a sector in which it already operates, generates attractive returns and will have an opportunity to realize cost synergies.

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