3M Co. is considering selling billions of dollars of assets from its industrials operations as it looks to carve out low-growth businesses, according to people familiar with the matter.
William Brown
The conglomerate has been speaking with Goldman Sachs as it reviews potential divestments, said the people, who asked not to be identified because they weren’t authorized to speak publicly.
3M’s safety and industrials unit, which generated about $11 billion in revenue last year, encompasses businesses such as aftermarket auto products, personal safety equipment and industrial adhesives and tapes, among others.
A final decision to pursue a separation of the assets hasn’t been made and 3M could opt to move forward with its current structure, the people added.
Representatives for Maplewood-based 3M and Goldman Sachs declined to comment.
Shares of 3M closed flat Friday at $158.66, giving the company a market value of about $84 billion. The stock has gained about 18% in the past year.
Since taking the reins last year, 3M Chief Executive Officer William Brown has spoken on earnings calls about looking at asset sales “where appropriate.”
Earlier moves by 3M have included spinning off its health care arm into a new public company called Solventum Corp. last year. Solventum’s shares have since rebounded from a low in July 2024, giving the St. Paul-based company a market value of almost $13 billion.
“3M’s leadership has reset priorities to reinvigorate growth by shifting RD toward product development and improved commercialization,” Bloomberg Intelligence analysts Mustafa Okur and Karen Ubelhart said in a research note this week. “Product pruning is underway, but bigger portfolio changes may be needed.”
Brown has also tried to push 3M back into organic sales growth, with all of its three business groups having grown during the past three quarters. Brown has also had to contend with the Trump Administration’s tariffs, deploying mitigation measures such as shifting production and pricing changes.
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