Healthcare business to be spun out from 3M

3M Inc. announced on Tuesday that by the end of 2023, they plan to spin out its healthcare business, separating from its material science products.
The company will include 3M’s biopharma, dental, health IT and wound care filtration products. In terms of revenue, the segment brought in approximately $8.61 billion last year. 3M are planning to maintain a 19.9% stake in the company.
Each company will have their management teams and boards. However, 3M hasn’t clarified who is leading the healthcare spinoff.
The deal is expected to be finalised by the end of next year and is expected to be tax-free, subject to approval from 3M’s board of directors and filing with the Security and Exchange Commission. In addition, 3M is spinning out its food safety business in a separate transaction, expecting to close in September 2022.