Earlier this week multinational conglomerate 3M announced their plans to spin off its Health care business into a new public company. Per the company’s press release, 3M will continue to be a leading global material science innovator and staying present in diverse end markets, with science and technology, manufacturing, global capabilities, and iconic brands. Their standalone public health care venture will become a global diversified healthcare technology company that will focus on wound care, oral care, healthcare IT and biopharma filtration. 3M chairman and chief executive officer Mike Roman says of the news, “Today’s actions advance our ability to create value for customers and shareholders. Disciplined portfolio management is a hallmark of our growth strategy. Our management team and board continually evaluate the strategic options that will best drive long term sustainable growth and value. The decision to spin off our Health Care business will result in two well-capitalized, world-class companies, well positioned to pursue their respective priorities.”
Additionally, this spin-off intends to be tax-free for for U.S. federal income tax purposes, and is expected to be completed by the end of 2023. Further, 3M will retain responsibility for non-Health Care related litigation, including those related to Combat Arms Earplugs and PFAS. Their financial advisors will come from Goldman Sachs & Co and PJT Partners. Wachtell, Lipton, Rosen & Katz is serving as legal counsel on the spin-off of 3M’s Health Care business.
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