3M details upcoming spinoff of health care business into Solventum

Chicago, Feb. 21 – 3M Co. provided more details about the upcoming spinoff of its health care business into a new company, Solventum Corp. (Baa3/BBB-/BBB-), in a form 10 filing with the Securities and Exchange Commission.

The new company will pay 3M a distribution to effect the separation. The fee will be supported by new debt.

Solventum expects to complete one or more financing transactions before the distribution is completed.

The new company anticipates starting with $8.38 billion of outstanding debt upon completion of the distribution.

Solventum will maintain $600 million in available cash at the time of the separation.

The spinoff date is anticipated to be April 1.

The new company will trade on the New York Stock Exchange as “SOLV.”

After the separation, 3M will continue to own 19.9% of the outstanding shares of Solventum, but they will be separate companies.

The new health care company will be based in Maplewood, Minn.

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