Business

3M will transform its healthcare business into a new public company

3M announced Tuesday that it will turn its healthcare business into a separate publicly traded company.

New businesses will focus on wound and oral care, healthcare IT and biofiltration, materials science companies said in a release. That includes products like bandages, skin adhesives, mouth straighteners, air purifiers, and optical lenses.

The company’s wellness products also include the Bair Hugger surgical warming system, which is currently the subject of nearly 6,000 lawsuits. 3M asserts that the product is not associated with surgical site infection.

3M’s healthcare products will generate more than $8 billion in sales in 2021. The transaction is expected to close 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, beating analysts’ expectations of $2.42 per share and revenue. revenue of $8.58 billion, according to Refinitiv consensus estimates.

The company’s shares were up about 4% ahead of the market.

3M is concurrently shutting down its food safety business. That branch will merge with Neogen and is expected to divest in September.

—The calculator contributed to this report.

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