3M announced on Tuesday that it will spin off the healthcare business into a separate publicly traded company.
The new business will focus on wound and oral care, health IT and biopharma filtration, the materials science company said in a release. It includes products such as bandages, skin adhesives, oral aligners, air purifiers and optical lenses.
3M Health Products recorded more than $8 billion in sales in 2021[ads1]. The transaction is expected to be completed by the end of next year.
The announcement comes alongside 3M’s second quarter earnings report. The company posted adjusted earnings per share of $2.48 on revenue of $8.7 billion, beating analysts’ expectations of $2.42 per share and revenue of $8.58 billion, according to Refinitiv consensus estimates.
Shares in the company rose by approx. 4% before the market.
At the same time, 3M spins out its food safety business. This branch will merge with Neogen and is expected to be sold by September.