HomeMy WebLinkAbout2016 03-02 3M Collaborates with Festool for Automotive Repair Market NASDAQ 3/2/2016 3M Collaborates with Festool for Automotive Repair Market-NASDAQ.com
3M Collaborates with Festool for Automotive
Repair Market
By: Zacks.com
Posted: 3/1/2016 4:10:00 PM
Referenced Stocks: MMM;MIC;GGG;BRRAY
3M Company MMM recently collaborated with Festool brand products' maker, TTS Tooltechnic
Systems AG & Co. KG, to furnish customers with an all-inclusive surface preparation and finishing
system. The new system will cater to the worldwide automotive collision repair industry's
requirements for surface preparation and finished products.
3M's Automotive Aftermarket Division (AAD) is likely to become the exclusive supplier of 3M and
Festool Automotive System's new products in the market. The company expects to launch the
products in the U.S. and Canada in the second half of the current year.
This strategic collaboration is a smart move by the company. The deal will help 3M become the
sole supplier of this new system, giving it an edge over its competitors and helping it expand its
foothold worldwide.
As per Hexa Research, the Global Automotive Collision Repair market size is expected to reach
$196 billion by 2020, growing at a CAGR of over 2% from 2014 to 2020. The rapid increase in the
fleet of automobiles and number of vehicles on roads is also expected to raise demand for 3M's
products in the global collision repair market. On the basis of this research, we can conclude that
3M's initiative to collaborate with Festool Automotive Systems using the latter's best- in-class
power tools for providing innovation and quality will help it cater to the growing customer demand
in the Automotive Collision Repair market. 3M's new system is likely to be profitable for the
company, besides helping it expand its portfolio in the market.
Maplewood, MN-based 3M employs 88,000 people worldwide, operates in more than 65 countries,
and manufactures in excess of 55,000 products. Its products include adhesives, abrasives,
laminates, passive fire protection, dental and orthodontic products, electronic materials, medical
products, car-care products (sun films, polish, wax, car shampoo, treatment for the exterior, interior
and the under chassis rust protection), electronic circuits, and optical films.
3M currently carries a Zacks Rank #3 (Hold). Some other stocks that are worth a look in the
industry include Macquarie Infra MIC , Barloworld Ltd. BRRAY , and Graco Inc. GGG . Macquarie
sports a Zacks Rank #1 (Strong Buy), while Graco and Barloworld each carry a Zacks Rank #2
(Buy).
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3/2/2016 3M Collaborates with Festool for Automotive Repair Market-NASDAQ.com
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