Solventum Corporation is an American health care company that was spun off from 3M on April 1, 2024.
| Company type | Public |
|---|---|
| Industry | Health care |
| Predecessor | 3M (health care division) |
| Founded |
|
| Headquarters | , U.S. |
Key people |
|
| Revenue |  US$8.2 billion (2023) |
| US$1.7 billion (2023) | |
| US$1.3 billion (2023) | |
| Total assets | US$13.9 billion (2023) |
| Total equity |  US$11.7 billion (2023) |
Number of employees | 22,000 (2024) |
| Website | solventum |
| Footnotes / references [1] | |
History
editSpin-off
editOn July 26, 2022, 3M announced that it would spin off its healthcare division as a separate company to streamline operations. The new company would assume 3M's business in wound and oral care, health informatics, and biopharmaceutical filtration.[2] The sales of products in these fields accounted for about a quarter of 3M's total sales in 2021.[3] CEO Mike Roman said that the split would "position 3M for the future, to create more opportunity and greater certainty".[4]
Bloomberg News said that the move followed a period of declining profits attributed to shifting economic trends, and would "dramatically reshape a company known for diverse product lines, from electronic components to dental adhesives to Post-it notes".[5] In fact, the announcement of the spin-off occurred the same day as a separate announcement that a 3M subsidiary, Aearo Technologies, had declared Chapter 11 bankruptcy after settling lawsuits alleging that the earplugs it had manufactured for U.S. military service members were defective and damaged their hearing.[6]
Many observers placed this business decision in a larger trend of other industrial conglomerates that had undergone similar splits in the preceding few years. In November 2021, General Electric announced that it would spin off its health care, aerospace, and energy businesses as GE HealthCare, GE Aerospace, and GE Vernova, respectively;[5] the same week, Johnson & Johnson announced that it would spin off its consumer health division as a separate company, Kenvue.[4] Comparisons were also made to the decisions by Kellogg's[4] and Toshiba to split into multiple entities,[6] as well as United Technologies's spin-off of Otis Worldwide and Carrier Global before its merger with Raytheon.[5] 3M itself sold its food safety business to Neogen in September 2022.[2]
On January 24, 2023, the health care business was registered as a corporation in Delaware under the provisional name "3M Health Care Co.".[7] On November 16, 2023, 3M unveiled that the new company would be called Solventum, a portmanteau of the words "solving" and "momentum".[8]
The spin-off was completed on April 1, 2024, with 3M retaining about 19.9% of Solventum.[9]
Independent operation
editThe first CEO of Solventum is Bryan Hanson,[8] who has served in the role since September 1, 2023.[10]
References
edit- ^ "Information Statement of Solventum Corporation (Form 8-K)". U.S. Securities and Exchange Commission. March 13, 2024.
- ^ a b Stebbins, Jack (July 26, 2022). "3M will spin off its health-care business into a new public company". CNBC. Retrieved February 23, 2024.
- ^ Halter, Nick (July 27, 2022). "What 3M's health care spinoff could mean for Minnesota". Axios. Retrieved February 23, 2024.
- ^ a b c Nelson, Tim (July 26, 2022). "3M will spin off $8.6 billion health care business into new company". Minnesota Public Radio. Retrieved February 23, 2024.
- ^ a b c Beene, Ryan; Larkin, Catherine (July 26, 2022). "3M soars most since pandemic's start on health-care spinoff plan". Bloomberg News. Retrieved February 23, 2024.
- ^ a b Deka, Kannaki; Ganapavaram, Abhijith (July 26, 2022). "3M to spin off healthcare business, earplugs unit seeks bankruptcy protection". Reuters. Retrieved February 23, 2024.
- ^ "Form 10, Exhibit 99.1 (Solventum Corporation)". U.S. Securities and Exchange Commission. February 20, 2024. Archived from the original on February 23, 2024. Retrieved February 23, 2024.
Solventum was incorporated in Delaware for the purpose of holding the Health Care Business in connection with the separation and distribution described in this information statement. Prior to the contribution of the Health Care Business to Solventum by 3M, which will occur prior to the distribution, Solventum will have no operations, and will have no assets or liabilities of any kind, other than those incidental to its formation and the separation. ... Solventum's principal executive offices will be [in] Maplewood, MN ... Solventum was formed in Delaware on January 24, 2023, for the purpose of holding the Health Care Business. As part of the plan to separate the Health Care Business from the remainder of 3M's businesses, 3M plans to transfer the equity interests of certain entities that are expected to operate the Health Care Business and the assets and liabilities of the Health Care Business to Solventum prior to the distribution.
- ^ a b Johnson, Brooks; Gilyard, Burl (November 16, 2023). "3M reveals the name of its health care business to be spun off next year". Star Tribune. Retrieved February 23, 2024.
- ^ Johnson, Brooks (February 21, 2024). "3M's health care spinoff becomes Minnesota's newest public company on April 1". Star Tribune. Retrieved February 23, 2024.
- ^ Deka, Kannaki (August 22, 2023). "3M names Bryan Hanson as CEO of its health care business". Reuters. Retrieved February 23, 2024.
External links
edit- Official website
- Business data for Solventum Corporation: