3M Healthcare Spinoff Solventum Slides On NYSE Debut

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Solventum Corp (NYSE: SOLV) lost about 3.0% as it debuted on the New York Stock Exchange on Monday. The healthcare name was separated from 3M & Co (NYSE: MMM) in March.

How much of Solventum is under 3M ownership?

The manufacturing giant based out of Saint Paul, Minnesota still has a near 20% stake in $SOLV. It, however, plans on unloading all of it over the next five years.

3M first revealed plans of separating its healthcare unit that made up roughly a quarter of its annual sales in 2022. Spin offs tend to help accelerate growth and, therefore, have been fairly common with multinational conglomerates in recent years.

Still, shares of parent 3M & Co opened nearly 15% down this morning related partially to a dovish note from Brett Linzey – a Mizuho analyst (read more).

3M stock is having a difficult Monday

Solventum – the healthcare spinoff of 3M ended last year with $8.2 billion in sales and a headcount of 22,000 globally. Bryan Hanson, the chief executive of $SOLV said in a press release today:

Solventum is now better positioned to create long-term value for shareholders through greater focus on our core business, enhanced ability to execute on industry-specific growth and market strategies and tailored capital allocation strategies.

Meanwhile, 3M stock is in trouble at writing after L. Roy Papp & Associates LLP as well as Patriot Financial revealed to have meaningfully trimmed their respective stakes in $MMM in Q4.

The New York listed firm that currently pays a dividend yield of 6.60% is scheduled to report its quarterly financial results on April 23rd.

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