ST. PAUL, Minn. – 3M will spin off its health care division to create a standalone business focused on wound care, oral care, health care IT and biopharma filtration.
The company says the health care division, with approximately $8.6 billion in sales in 2021, will be a diversified technology leader with a deep and diverse portfolio of trusted brands, global capabilities and leadership in attractive end-market segments. It says the move better positions the division to deliver industry-leading innovation that enables better, smarter and safer health care for patients worldwide.
“Today’s actions advance our ability to create value for customers and shareholders,” said Mike Roman, 3M chairman and CEO. “Disciplined portfolio management is a hallmark of our growth strategy. Our management team and board continually evaluate the strategic options that will best drive long-term sustainable growth and value. The decision to spin off our health care business will result in two well-capitalized, world-class companies, well positioned to pursue their respective priorities.”
The new 3M, with $28.6 billion in sales in 2021, will remain a leading global material science innovator serving diverse end markets, with science and technology, manufacturing, global capabilities, and iconic brands.
The company expects to complete the transaction by the end of 2023.