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3M’s (NYSE:MMM) +1.6% in Friday’s trading as its board approved the spinoff of the company’s Health Care business, which will be called Solventum Corp., effective April 1.
3M (MMM) shareholders as of March 18 will be eligible to receive one share of Solventum for every four 3M shares; the company will retain a ~20% stake after the distribution.
The new company, which has applied to trade on the NYSE under the SOLV ticker, will separate 3M’s (MMM) relatively faster-growing business in health care as other segments such as industrial and consumer products lag.
3M (MMM) said the new company amassed $8.2B in revenues in FY 2023 and an estimated global addressable market of ~$93B.
