3M Co. (AA/Stable/A-1+) announced today that it has agreed to acquire Corning Precision Lens Inc., a wholly owned subsidiary of Corning Inc., for $850 million in cash. Standard&Poor's Ratings Services said the acquisition would not affect the company's ratings or outlook. 3M is expected to continue to generate significant levels of discretionary cash flow (after capital expenditures and common dividends); discretionary cash flow for the first six months of fiscal 2002 exceeded $750 million. The current ratings and outlook incorporate the expectation that incremental, acquisition-related debt will be paid down by the end of 2003, and that 3M will continue to maintain a capital structure and financial profile appropriate for the rating.
