Office products maker 3M is buying ceramic components maker Ceradyne for approximately $847 million in cash, saying it will complement existing businesses in the transportation, energy and defense sectors.

3M Co. said Monday that it will pay $35 for each Ceradyne Inc. share, a 43 percent premium to the company's Friday closing price of $24.43.

Ceradyne has approximately 24.2 million outstanding shares, according to FactSet.

The companies put the total value of the transaction at about $860 million.

Ceradyne's board has unanimously recommended shareholders accept the offer. A majority of Ceradyne's shares must be tendered in the offer for the acquisition to move forward.

A 3M subsidiary is expected to start a tender offer to buy all of Ceradyne's outstanding stock within 10 business days.

Ceradyne, based in Costa Mesa, Calif., has annual revenue of approximately $500 million. It will become part of 3M's energy and advanced materials unit, which is part of the industrial and transportation business.

3M, maker of Post-It sticky notes, has operations in more than 65 countries and is based in St. Paul, Minn.

3M anticipates that the buyout will add 5 cents per share to its earnings in the first year after the deal is complete. Taking out purchase accounting adjustments and expected integration expenses, the transaction is anticipated to add 1 cent to earnings per share over the same period.

The acquisition is expected to close in the fourth quarter.