3M (NYSE: MMM) stands to make billions of dollars from spinning off its Health Care business into a new company called Solventum, according to a Star Tribune of Minneapolis report.
The newspaper’s report cited a Fitch Ratings report, which said the up to $12 billion from the Solventum spinoff would come in over the next five years.
3M needs the money as it pays billions of dollars to settle lawsuits. The company is resolving hundreds of thousands of veterans’ lawsuits over faulty earplugs, and it could pay billions more dollars over lawsuits related to the “forever chemical” PFAS.
“The spin is on track to be completed in the first half of this year, and we are confident in the value it will create for customers, care providers, patients and shareholders,” 3M CEO Mike Roman said during the company’s earnings call with analysts on Jan. 23.
With $8.4 billion in annual revenue, 3M’s healthcare business is the 17th largest medtech outfit in the world, according to our annual Medtech Big 100 report.