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3M Inc. He started his healthcare business in 2010. The company announced Tuesday that it plans to spin off its materials science products by the end of 2023.
The independent company includes 3M’s wound care, dental, health IT and biopharma screening products. This segment brought in about $8.61 billion in revenue last year. 3M plans to hold a 19.9% stake in the company.
CEO Mike Roman said in a news release that the decision “leaves two well-capitalized, world-class companies well positioned to pursue their priorities.”
Although 3M has not said who will lead the healthcare spinoff, each company will have its own board and management team.
“We look broadly at where to invest in our portfolio, where acquisitions make sense, and how we get the most value out of it, and that’s what was behind the decision to ultimately drive health care,” Roman said on Tuesday’s investor call. . “We have invested in strategies to create a strong healthcare company. It’s well positioned to succeed and have a great future as an independent company, and that really drove the decision.
The deal is expected to be tax-free and is expected to close by the end of next year, subject to approval from the company’s board of directors and filing with the Securities and Exchange Commission. 3M is also processing its food safety business in a separate transaction expected to close in September 2022.
3M joins several other large tech companies that have turned to spinoffs as a strategy. Earlier this year, Zimmer Biomet He spun out It plans to spin off its spine and dental businesses to Zimvi, Johnson & Johnson Consumer health poured the team And GE is preparing to shed its health division. In early 2023.
Shares of 3M closed Tuesday at $140.75, up $6.63 on the New York Stock Exchange.
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