3M Considering The Sale Of Its Drug Delivery Systems Unit For About $1 Billion

Known for selling everything from Post-It Notes to automotive adhesives, 3M Company (MMM) may reportedly be looking to sell off its drug delivery systems unit for about $1 billion in an auction process.

3M, which regularly buys and sells businesses as part of its portfolio strategy, is exploring the possibility of a sale for the unit, which produces products such as asthma inhalers and skin patches, sources told Bloomberg. The company is reportedly working with an advisor for the auction.

On Thursday, 3M CEO Mike Roman mentioned the buying and selling strategy of the company, saying that if “there is a better natural owner out there, we can create more value for 3M shareholders by divesting those assets.” Roman made no mention of the sale of the drug delivery systems business at the time.

The drug delivery systems unit, which has sales of $300 million in the first nine months of the year, is expected to draw interest from private equity firms, the sources told the news outlet. Sales for the business unit declined 11% during this nine-month period compared to the same timeframe the previous year, according to 3M’s Q3 earnings report.

Earlier this year, 3M purchased bandage company Acelity Inc. for $4.4 billion in its biggest deal to date and sold a communication business for about $900 million in 2018.

Shares of 3M stock were up 3.79% as of 12:57 p.m. EST on Friday.