3M
(NYSE: MMM)
announced last week that its board of directors approved the planned spinoff of Solventum, its Health Care business.
Board approval further solidifies the company’s previously announced intent to spin Solventum into a standalone company on April 1. The St. Paul, Minnesota–based manufacturing giant first announced plans to spin off its Health Care unit in June 2022. It named the standalone company, which generates more than $8 billion in annual revenue, “Solventum” in November 2023.
Following board approval, 3M applied to list Solventum on the New York Stock Exchange under the “SOLV” ticker.
Solventum will include more than 20,000 employees, led by former Zimmer Biomet CEO Bryan Hanson as its CEO. The company also landed former Insulet CFO Wayde McMillan as he takes over the same post. Carrie Cox will serve as board chair and former NuVasive CEO Christopher Barry is the new President of Medical Solutions.
The new standalone company’s leadership team plans to provide a business overview at an Investor Day event on March 19 as well.
“Today’s approval is another important milestone as we continue to make progress in building two world-class companies, both positioned to pursue their respective growth and tailored capital allocation plans,” said Mike Roman, 3M chair and CEO. “We are pleased to have taken another step as Solventum prepares to independently pursue its mission and promise to innovate in the exciting and rapidly growing healthcare market.”
Additional details of the 3M-Solventum spin
Holders of 3M stock will be entitled to receive one share of Solventum common stock for every four shares of 3M common stock held at the close of business on March 18, 2024. The company expects the distribution to occur before the opening of trading on April 1.
3M’s board approved the distribution to 3M shareholders of 80.1% of outstanding Solventum shares. The company expects to retain 19.9% of the outstanding shares and monetize them within five years of the spin.
Additionally, 3M anticipates that “when-issued” trading in Solventum stock on the NYSE will begin on or about March 26, 2024. Trading begins in the “regular way” on April 1.
3M said Solventum brought in $8.2 billion in revenue in 2023 and serves an approximately $93 billion global market. The new company features four operating business segments: MedSurg, Dental, Health Information Systems and Purification & Filtration.