3M Explores Asset Sales to Boost Growth, Talks with Goldman Sachs
3M Co. is exploring strategic changes, including potential asset sales, as part of efforts to boost organic growth. The company has been in talks with Goldman Sachs Group Inc. regarding this possibility.
3M, known for products like Post-it Notes and Scotch Tape, has seen its stock rise by about 18% in the past year, reaching a market value of approximately $84 billion. However, analysts at Bloomberg Intelligence suggest that more significant portfolio changes may be needed to reinvigorate growth.
Last year, 3M spun off its health-care business into a new public company called Solventum Corp. Now, the company is considering selling parts of its industrial operations, specifically segments with low growth. These discussions are ongoing with Goldman Sachs, but no final decision has been made yet. In the past, 3M has divested or spun off various businesses to focus on more profitable or strategic areas, though specific past sales or spin-offs were not detailed in the current results.
3M's safety and industrials unit generated about $11 billion in revenue last year. The company is now contemplating selling billions of dollars of assets from this unit.
3M Co. is evaluating potential asset sales, with discussions ongoing with Goldman Sachs. The company's CEO, William Brown, has previously mentioned considering asset sales 'where appropriate'. These moves aim to push the company back into organic sales growth and reinvigorate growth, as suggested by analysts.
