3M (NYSE: MMM) announced today that it plans to spin off its Health Care business by the end of 2023.
The new Health Care business will be a roughly $9-billion-a-year company with a focus on wound care, oral care, healthcare IT and biopharma filtration. 3M officials argue that the transaction will better position Health Care to innovate. 3M will retain a 19.9% stake in Health Care that it will monetizedover time.
“Today’s actions advance our ability to create value for customers and shareholders,” 3M CEO Mike Roman said ina. news release. “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.”