3M and Bain Capital Seal $1.95 Billion Acquisition of Madison Fire & Rescue
3M has partnered with Bain Capital to acquire Madison Fire & Rescue for $1.95 billion, with the deal expected to close in the second half of the year, subject to customary conditions, according to Private Equity Wire. As part of the transaction, 3M will contribute its Scott Safety breathing apparatus division to a newly formed fire and safety platform and receive $700 million in cash upon completion.
Deal Structure
The acquisition involves 3M retaining a 50.1% controlling stake in the new entity, while Bain Capital will hold the remaining interest. The partners are purchasing Madison Fire & Rescue from Madison Industries, as outlined in the agreement. This structure allows 3M to integrate its Scott Safety unit, known for self-contained breathing apparatus, with Madison’s existing operations.
Company Background
Madison Fire & Rescue manufactures specialized equipment for emergency responders, including extrication tools and fire suppression products sold under brands such as Holmatro, Amkus, and Task Force Tips. 3M stated that combining its Scott Safety division with Madison’s broader product suite will enhance its ability to serve firefighters, first responders, and industrial safety customers, according to Private Equity Wire.
Strategic Implications
As a widely-known private equity firm, Bain Capital’s involvement in this deal aligns with its participation in major acquisitions, though specifics are limited to this transaction. The formation of the new fire and safety platform underscores the integration of 3M’s contributions with Madison’s manufacturing capabilities.
