por John R. Fischer
, Senior Reporter | November 27, 2023
3M will call its $8 billion healthcare spin off business, Solventum.
3M has revealed that following its spin off, its healthcare business will operate under the name Solventum.
In 2022, the company announced
that it would spin off the division into an independent $8 billion company focused on wound care, healthcare IT, oral care, and biopharma filtration. Originally aiming to complete it by the end of 2023, the company said earlier this year that it had pushed back the separation date
to the first half of 2024.
The name of the company is a combination of "solving" and "momentum,” according to Bryan Hanson, chief executive officer of 3M Health Care Business Group.
"The name signifies who we are as a team — problem solvers who create innovative solutions that touch millions of lives, transform the patient experience and save time for healthcare professionals,” he said in a statement.
The company will be made up of more than 20,000 professionals and have a logo in the form of a green S shape.
The spinoff will mark the end of more than 70 years of the healthcare business as a component of 3M, which will retain a 19.9% stake that it will sell off over time. It says that the separation will allow the healthcare division to sell more assets to rapidly reduce its debt, tailor capital allocation strategies, and make company-specific investments for growth, different investor bases, and distinct boards and management teams.
In 2022, the healthcare business earned $8.4 billion in sales, and it is expected to be spun off with net leverage of approximately three to 3.5 times earnings before interest, taxes, depreciation, and amortization (EBITDA).
Bryan Hanson, who previously led medical device company Zimmer Biomet and oversaw the spin off of its spine and dental device businesses, will be the CEO of the independent company. Carrie Cox, who has been an advisor to 3M, will be the chair of its board of directors.
The spinoff is subject to final approval by 3M's board of directors and other required conditions.