3M to spin off health care business, create "New 3M"
MAPLEWOOD, Minn. -- One of Minnesota's largest employers announced Tuesday it will split into two multibillion dollar businesses.
On Tuesday, Maplewood-based 3M said it will "spin off" its health care business, which the company said totaled $8.6 billion in sales in 2021.
"The New 3M will remain a leading global material science innovator serving customers across a range of industrial and consumer end markets," 3M said in a statement, "and Health Care will be a leading global diversified healthcare technology company focused on wound care, healthcare IT, oral care, and biopharma filtration."
The "New 3M" side of the business accounted for nearly $27 billion in sales last year, the company said. 3M said operating as standalone companies will allow each unit "to better position for long term success."
"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," 3M chairman and CEO Mike Roman said.
The split is expected to be completed by the end of 2023, pending approval from the board of directors and federal officials.