3M announces plan for Health Care business as standalone entity

Tuesday, Maplewood-based 3M announced it is planning to spin off its Health Care business, resulting in two public companies if approved.

According to a release issued by the company, 3M’s Health Care entity will focus on wound and oral care, healthcare IT and more.

Company officials say the spin-off is “intended to be tax-free for U.S. federal income tax purposes,” adding they expect the deal to be complete by the end of 2023.

Final approval from the company’s board of directors and a ruling from the Internal Revenue Service are among the items still needed for the transaction to be finalized.

Tuesday’s release also said 3M will continue to be responsible for non-Health Care related litigation, such as lawsuits regarding the combat arms earplugs and PFAS.

Meanwhile, the release goes on to say company officials expect a previously-announced separation of its Food Safety business to be closed by Sept. 1 of this year, however certain conditions still need to be met.

Tuesday, 3M reported a second-quarter profit of $78 million, which topped Wall Street expectations.