Solventum, 3M’s health care spinoff based in Maplewood, is exploring a sale of of its purification and filtration business, The Wall Street Journal reported Thursday citing unnamed sources.
Solventum’s business segment selling purification products used in commercial spaces and homes generated $238 million in sales in the most recent financial quarter, $10 million less than the quarter a year prior, when it was still a part of 3M. Solventum’s stock price rose more than 3% following publication of the report on Thursday.
A company spokesperson said in a statement, “Solventum does not comment on rumors or speculation.”
Solventum spun off from 3M on April 1. In August, CEO Bryan Hanson told investors that buying and selling parts of the business to optimize the portfolio around high-growing products will be a key strategy for the company’s “transformation and turnaround.”
“We’re looking at pathways for our portfolio optimization through inorganic means in order to bring additional strategic clarity, organizational focus and value creation,” Hanson said. “And as a result, we are actively assessing our various markets and businesses and their value contribution to deliver on our strategic and financial priorities.”
The company also operates units selling dental products, health information systems, as well as medical and surgical products. Purification’s $238 million in sales was the lowest of the four units in the most recent quarter, as was its three-month operating margin, at 8%.
Manufacturing and med-tech companies such as Medtronic and DuPont have announced spinoffs in recent years. 3M Chief Executive William Brown reported on an investors call this week that company is actively reviewing its portfolio and is in the early process of selling a few of its smaller businesses.