March 19 (Reuters) -

3M ( MMM ) will spin off its Scott Safety business and team

up with Bain Capital to buy Madison Fire & Rescue for $1.95

billionto create a fire and safety joint venture that will

expand the industrial giant's safety portfolio.

3M ( MMM ) will own 50.1% of the new company and Bain Capital the

remaining 49.9%

3M ( MMM ) has been focused on streamlining its businesses and

expanding margins over the last few years, spinning off its

healthcare business into a separate company called Solventum ( SOLV )

in 2024.

Upon completion of the latest deal, 3M ( MMM ) will receive $700 million

in cash proceeds for Scott Safety, which makes specialized

portable air supply devices used by firefighters and first

responders, the company said.

Madison Fire & Rescue, a unit of privately held Madison

Industries, makes fire suppression products and rescue

equipment, including high-pressure portable fire pumps used by

wildland firefighters and battery-powered rescue tools.

"This strategic transaction broadens 3M's ( MMM ) safety portfolio,"

said William Brown, 3M's ( MMM ) Chairman and CEO, adding that the

expanded market reach would position the company to enhance

margins and generate strong free cash flow.

3M's ( MMM ) expertise in the safety industry and Bain Capital's

capability to integrate businesses and drive synergies make it

an "ideal partnership," the company added.

The deal is expected to close in the second half of 2026.