ST PAUL, Minn. — St. Paul-based 3M announced Tuesday that the company intends to spin off its health care business into a public company.
According to a press release, the "new" 3M "will remain a leading global material science innovator serving customers across a range of industrial and consumer end markets," while the health care division will be a "diversified healthcare technology company focused on wound care, healthcare IT, oral care, and biopharma filtration."
The company said splitting the two companies will make 3M "well positioned to pursue their respective growth plans."
"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," chairman and CEO Mike Roman said in a statement.
3M expects the spin-off transaction to be complete by the end of next year, and added the company will retain responsibility for non-Health Care related litigation, including those related to Combat Arms Earplugs and PFAS.
According to NBC News, thousands of U.S. military active-duty service members and veterans are suing 3M over hearing problems they say resulted from using company’s earplugs.
In a separate press release issued Tuesday, 3M said it has voluntarily initiated chapter 11 proceedings "to efficiently and equitably resolve all claims determined to be entitled to compensation."
According to 3M, there are about 115,000 claims filed in connection to the lawsuit and another 120,000 claims on an administrative docket as of June 30, 2022.
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