3M to sell drug delivery business for $650 million

The logo of 3M is seen at the 3M Tilloy plant in Tilloy-Lez-Cambrai, France, August 18, 2019. REUTERS/Pascal Rossignol

(Reuters) - Industrial conglomerate 3M Co MMM.N said on Thursday it would sell its drug delivery business to investment firm Altaris Capital Partners LLC for about $650 million as part of its plan to shed non-core assets.

The unit, which makes inhalers and skin patches, accounted for about 1.4% of the company’s 2018 revenue of $32.77 billion. Sales from the business were flat on an organic local currency basis in the recently reported third quarter.

The company said it would retain its transdermal drug delivery components business.

“This transaction will allow us to focus more resources on our core health care business as well as retain a share in the value of the drug delivery business as it grows over the coming years” Chief Executive Officer Michael Roman said.

3M expects to realize a gain of 45 cents to 50 cents per share upon closing of the deal in the first half of 2020.

Morgan Stanley & Co. LLC acted as financial adviser to 3M.

Reporting by Dominic Roshan K. L.; Editing by Anil D’Silva