St PAUL - Materials science company 3M has announced plans to spin-off its health care business.
The new, standalone business, known as Health Care, will focus on wound care, healthcare IT, oral care and biopharma filtration.
"Today's actions advance our ability to create value for customers and shareholders," said 3M chairman and chief executive officer Mike Roman. "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."
Health Care, with approximately US$8.61 billion in sales in 2021, is described by 3M as "a diversified healthcare technology leader with a deep and diverse portfolio of trusted brands, global capabilities, and leadership in attractive end market segments such as wound care, oral care, healthcare IT, and biopharma filtration".
"Health Care will be better positioned to deliver industry-leading innovation that enables better, smarter, and safer healthcare for patients worldwide," the company said.
The remaining part of the business will be known as New 3M which, with $26.8 billion in sales in 2021, will continue to target the electronics, safety, mobility, digitization, home improvement and sustainability sectors.
3M expects to complete the transaction by year-end 2023.