3M Board Approves Healthcare Unit Spinoff — Update
By Ben Glickman
3M's board of directors has approved a spin-off of the company's health care business, with the official split of the faster-growing segment set for early next month.
The St. Paul, Minn.-based company said on Friday that the spin off of the unit, which will be called Solventum Corp., would occur on April 1. The new company has applied to trade on the New York Stock Exchange under the ticker SOLV.
The new company will include 3M's products in markets such as wound care, health care information technology and biopharma filtration. Announced in 2022, the spinoff will separate 3M's relatively faster-growing business in health care as its other segments, such as industrial and consumer products, lag.
3M said the new company had $8.2 billion in revenue in 2023, and an estimated global addressable market of about $93 billion.
Shareholders of 3M as of March 18 will be eligible to receive one share of Solventum for every four of 3M.
3M will retain about 20% stake in the company after the distribution. That stake will be monetized within five years.
Solventum will be led by Chief Executive Bryan Hanson, the former head of musculoskeletal company Zimmer Biomet Holdings. The appointment was announced in August.
Wayde McMillan, a former executive with medical device company Insulet, will serve as finance chief.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
March 08, 2024 14:13 ET (19:13 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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