3M health care spinoff will remain in Minnesota, for now

3M's health care business, which is on track to become a separate company by the end of the year, will remain a Minnesota-based company — at least for a while.

The health care spin-off so far has no name and no named leaders, but 3M said the new company will remain in Maplewood during a transitional period following the split. However, Minnesota may not be its permanent home.

"This transitional arrangement is separate from a final decision on the new company's eventual global headquarters location. That decision will be made by leadership of the new company and will be communicated at a future date," the company told the Star Tribune in an email this week.

Its health care business accounts for a quarter of 3M's revenue. Products include bandages, medical devices, oral care and health care IT.

3M said keeping the company in Maplewood in the short term is "an effective way to utilize space at 3M Center, while helping to enable business continuity and minimize disruption following the spin-off."

The conglomerate announced last July plans to spin off the $8.6 billion health care division into a separate company. The remaining 3M will have a roughly 20% stake in the new company, which it will sell off over time.

The division grew substantially in 2019 when 3M acquired San Antonio-based wound care company Acelity for $6.7 billion — the largest acquisition in 3M's history. That has led to some speculation the health care spinoff could be headed to Texas.

3M said it is on track to complete the separation by the end of 2023. Employees are being prepped for the transition.

"Employees who currently work in 3M's Health Care business are expected to be a part of the spin-off as well as those who primarily support 3M health care in a functional role," the company said. "The new company will retain access to relevant office and laboratory space at 3M Center in St. Paul for a transitional period following spin-off."

"For now, we continue to operate as one global company."

3M will announce its first-quarter earnings on April 25. Analysts expect adjusted earnings of $1.59 per share — a 40% drop from first quarter 2022 adjusted earnings — on revenue of $7.4 billion.