3M to spin off $8.6 billion health care business

3M plans to spin off its $8.6 billion health care business, a move meant to sharpen its focus and boost profitability.

While not a complete breakup like those proposed by industrial peers General Electric and Toshiba, the decision announced Tuesday will profoundly reshape Maplewood-based 3M and chart a new course for its yet-to-be-named health care spinoff.

“It’s a great opportunity for both businesses,” chief executive Mike Roman told the Star Tribune. “Actively managing our portfolio really helps us complement the value we create with our innovation and the businesses that we build.”

The health care business accounts for a quarter of 3M’s revenue. Products include bandages, regulated medical devices, oral care and health care IT.

Once complete, the 3M health care spinoff will be the third-largest medical technology company in the state after Medtronic and Boston Scientific.

The remaining company, which will keep the 3M name, last year posted $26.8 billion in sales across its other segments: safety and industrial, consumer, transportation and electronics. The company will have a 19.9% stake in the health care spin-off that it will sell off over time, company leaders said.

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