3M Spins Off $8Bn Stand-Alone Company Solventum

3M has successfully completed the spinoff of its healthcare division, forming a new stand-alone entity named Solventum Corporation, valued at over $8 billion. The move, which has been in progress since 2022, aims to create a dedicated platform for the development of innovative solutions in wound care, healthcare IT, oral care, and biopharma filtration. Solventum Corporation is now listed on the New York Stock Exchange under the ticker symbol SOLV.

Strategic Decision for Growth

The decision to separate the healthcare division reflects 3M’s strategic initiative to optimize capital allocations, focus on areas of growth, and attract a broader range of investors in the medical sector. Mike Roman, Chairman and CEO of 3M, expressed optimism about the future of both companies, stating, “Both companies are positioned to pursue their respective growth and tailored capital allocation plans.”

3M Unveils Name for Healthcare Business Spinoff: Solventum

While Solventum Corporation takes charge of healthcare solutions, 3M reaffirms its commitment as a global material science company, emphasizing its focus on science, technology, manufacturing, global capabilities, and iconic brands.

Shareholders of 3M received one share of Solventum common stock for every four shares of 3M common stock held. The distribution was intended to be generally tax-free. Additionally, 3M retains a 19.9% stake in Solventum, which it plans to sell off and monetize within five years following the spinoff.

Timeline and Leadership

Originally targeted for completion by the end of 2023, the separation was delayed to early 2024 to facilitate necessary approvals and regulatory processes. Bryan Hanson, former leader of medical device company Zimmer Biomet, has assumed the role of CEO of Solventum Corporation, bringing with him experience in overseeing spinoffs in the medical industry. Carrie Cox, an advisor to 3M, has been appointed as the chair of Solventum’s board of directors.

As Solventum Corporation charts its course as an independent healthcare solutions provider, and 3M strengthens its focus on material science, both entities are poised for growth and innovation in their respective fields. With experienced leadership and strategic vision, they aim to create value for stakeholders and drive advancements in healthcare and technology.