(Adds value including options and net of items)
Oct 1 (Reuters) - 3M Co plans to acquire Ceradyne Inc for about $860 million, adding advanced technical ceramics to its diverse portfolio, which ranges from Post-It notes to films used in television screens.
The offer of $35 per share represents a premium of about 43 percent to Ceradyne's Friday closing. The company's shares jumped to $34.85 in premarket trading.
The price tag includes $13 million in restricted stock options.
Under terms of the deal, 3M will launch a tender offer to buy all outstanding shares of Ceradyne within 10 business days. Ceradyne's board unanimously recommends shareholders accept the offer.
Ceradyne makes advanced technical ceramics used in various industries including automotive, oil and gas and defense. It will become part of the 3M Energy and Advanced Materials division.
Excluding purchase accounting adjustments and anticipated integration expenses, 3M said the acquisition should add a penny per share to earnings in the first year following its closure.
Credit Suisse advised 3M and Citibank advised Ceradyne.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Maju Samuel and Maureen Bavdek)
Keywords: CERADYNE 3M/