3M to Separate Healthcare Business
US conglomerate 3M is to spin off its healthcare business in a move that chairman and CEO Mike Roman said will result in “two well-capitalized, world-class public companies, well positioned to pursue their respective priorities.”
The separation is expected to be completed by the end of 2023, subject to customary conditions, including final approval from 3M’s board of directors.
According to 3M, the separated healthcare business will be “a leading global diversified healthcare technology company focused on wound care, healthcare IT, oral care and biopharma filtration,” while New 3M will “remain a leading global material science innovator serving customers across a range of industrial and consumer end markets.”
Healthcare had sales of about $8.61 billion last year, and 3M said its strong track record of profitability and robust cash flow generation makes it well positioned to pursue its strategic objectives and focus on growth. New 3M expects to retain a 19.9% stake in the standalone healthcare company, which will be monetized over time.
The Minnesota-based group will also complete the previously announced separation of its food safety business, which is being combined with Neogen. The closing date for this split-off transaction will be Sept. 1, 2022, subject to approval by Neogen shareholders, regulatory approvals and other customary conditions.
Author: Elaine Burridge, Freelance Journalist
