3M will spin off its health care business into a new public company

3M announced Tuesday that it will spin off its health care business into a separate publicly traded company.

The new business will focus on wound and oral care, healthcare IT and biopharma filtration, the material science company said in a release. That includes products like its bandages, skin adhesives, oral aligners, air purifiers and optical lenses.

3M health care products recorded more than $8 billion in sales in 2021. The transaction is expected to be completed by the end of next year, and 3M will maintain a 19.9% stake in the new company.

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, surpassing analyst expectations of $2.42 per share and revenue of $8.58 billion, according to Refinitiv consensus estimates.

Shares of the company were up about 4% premarket.

3M is simultaneously spinning off its food safety business. That branch will merge with Neogen and is expected to be divested by September.

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