3M to spin off its healthcare business into a new public company

3M announced that it would spin off its healthcare business into a separate publicly traded company.

3M, in a release, said that their new business would focus on oral care and wound, biopharma filtration, and healthcare IT. It includes products like skin adhesives, bandages, air purifiers, oral aligners, and optical lenses.

3M’s healthcare products also include the Bair Hugger surgical warming system, which is currently the subject of nearly 6,000 lawsuits. The company maintained that Bair Hugger has no relation to surgical-site infections. In 2021 the company’s healthcare products recorded more than $8 billion in sales. The transaction is predicted to be completed by the end of next year, and 3M will maintain a 19.9% stake in the new company.

The announcement of the new company comes after 3M said its second-quarter revenue fell nearly 3% to $8.7 billion. Net income dropped to $78 million from $1.5 billion a year. It also included a $1.2 billion pretax charge to resolve litigation related to Combat Arms Earplugs. After the company excludes this one-time charge, it will earn $2.48 per share. 3M’s performance will top. Analysts expected 3M to earn $2.42 per share on revenue of $8.58 billion. Shares of the company closed up 5% at $140.82.