3M plans to convert healthcare business into separate public trading company by next year end. Here's what may happen

3M, Minnesota, the US-based industrial giant, announced on Tuesday that it will spin off its healthcare business and join several manufacturing companies searching for simplifying their business and increasing their share price. The focus of the new public entity will be on healthcare IT and biopharma filtration, wound and oral care, etc. It will have products, such as bandages, air purifiers, skin adhesives, oral aligners and optical lenses.

In a release, the company said that the new 3M company will continue to function as one of the world’s leading material science innovators, serving customers throughout a range of industrial and consumer end markets. The firm claimed that the total sales in healthcare stood at US$ 8.6 billion in 2021, almost one-quarter of the total revenue of 3M. The statement further said that the total sales of ‘New 3M’ was US$ 27 billion in 2021, and functioning as standalone entities will allow each company to position itself for long-term success in a better way.

The CEO and chairman of 3M, Mike Roman, said that spinning off the healthcare business will create two well-capitalised and world-class businesses, which will be well positioned to engage in their respective priorities. The separation is expected to be completed by the end of 2023. The company will retain 19.9 per cent of stakes in the new business entity until the split is completed.


3M ranked 102 in the Fortune 500 list of the largest corporations by total revenue in the United States. The firm operates in over 70 countries around the world and employs approximately 95,000 people. Their next move to spin off the business would leave the industrial giant in heaps of cash as it struggles to shift the financial currents that have shattered its profits.