3M Sharpens Healthcare Focus With Drug-Delivery Sale
December 12 2019 - 11:23AM
Dow Jones News
By Colin Kellaher
3M Co. (MMM) said the deal to sell its drug-delivery business to
private-equity firm Altaris Capital Partners LLC will allow it to
focus on its core healthcare business while retaining a share of
the divested unit's profits.
The St. Paul, Minn., manufacturing and technology giant on
Thursday said it agreed to sell the business for total
consideration of about $650 million, including a 17% minority
stake.
3M said about 900 employees will join Altaris as part of the
sale of the business, which works with pharmaceutical and biotech
companies to make products using unique inhalation, transdermal,
microneedle and conventional drug-delivery technologies.
3M said it will account for its stake in the drug-delivery
business, which has annual sales of about $380 million, using the
equity method.
The company's healthcare segment posted sales of $5.29 billion
for the nine months ended Sept. 30.
New York-based Altaris, which focuses exclusively on the
healthcare industry, manages $2.5 billion of equity capital,
according to its website.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 12, 2019 11:08 ET (16:08 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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