ST.
PAUL, Minn., May 2, 2023
/PRNewswire/ -- 3M today announced it
has entered into agreements to sell certain assets associated with
its dental local anesthetic portfolio, based in Seefeld,
Germany, to Pierrel S.p.A.
("Pierrel"), a global provider of services for the pharmaceutical
industry, for a purchase price of $70
million, subject to closing and other adjustments.
3M's local anesthetic products, sold primarily in Europe and Asia, include products sold under the
Ubistesin™, Xylestesin™ and Mepivastesin™ brands together with
related syringe and needle products and are part of the dental
materials business in 3M's Oral Care Solutions Division.
As part of ongoing strategic portfolio management, 3M has decided to exit these products and
prioritize investments that leverage its Health Care business' core
Oral Care technologies.
"We believe that these products will be well positioned with
Pierrel," said Karim Mansour,
president, 3M Oral Care Solutions
Division. "3M will continue to invest
in oral care solutions for our Europe and Asia customers and those around the
world."
These local anesthetic products had annual sales in 2022 of
approximately $30 million and the
impact of ongoing operations were not material to 3M's financial
results.
The transaction, which is subject to information or consultation
requirements with relevant works councils and other closing
conditions, is expected to be completed in the third quarter of
2023. 3M expects to record a gain
upon this business's divestiture which it will reflect as an
adjustment in arriving at results, adjusted for special items.
After the transaction closes, 3M will
provide transition support to Pierrel to help facilitate a smooth
transition for customers.
3M will retain ownership of its
Seefeld facility and operations, which support 3M's Oral Care
business.
Forward-Looking Statements
This news release contains forward-looking information about
3M's financial results and estimates and business prospects that
involve substantial risks and uncertainties. You can identify these
statements by the use of words such as "anticipate," "estimate,"
"expect," "aim," "project," "intend," "plan," "believe," "will,"
"should," "could," "target," "forecast" and other words and terms
of similar meaning in connection with any discussion of future
operating or financial performance or business plans or prospects.
Among the factors that could cause actual results to differ
materially are the following: (1) worldwide economic, political,
regulatory, international trade, geopolitical, capital markets and
other external conditions and other factors beyond the Company's
control, including inflation, recession, military conflicts,
natural and other disasters or climate change affecting the
operations of the Company or its customers and suppliers; (2) risks
related to unexpected events such as the public health crises
associated with the coronavirus (COVID-19) global pandemic; (3)
foreign currency exchange rates and fluctuations in those rates;
(4) risks related to certain fluorochemicals, including liabilities
related to claims, lawsuits, and government regulatory proceedings
concerning various PFAS-related products and chemistries, as well
as risks related to the Company's plans to exit PFAS manufacturing
and discontinue use of PFAS across its product portfolio; (5) legal
proceedings, including significant developments that could occur in
the legal and regulatory proceedings described in the Company's
Annual Report on Form 10-K for the year ended Dec. 31,
2022 and any subsequent quarterly reports on Form 10-Q (the
"Reports"); (6) competitive conditions and customer preferences;
(7) the timing and market acceptance of new product and service
offerings; (8) the availability and cost of purchased components,
compounds, raw materials and energy due to shortages, increased
demand and wages, supply chain interruptions, or natural or other
disasters; (9) unanticipated problems or delays with the phased
implementation of a global enterprise resource planning (ERP)
system, or security breaches and other disruptions to the Company's
information technology infrastructure; (10) the impact of
acquisitions, strategic alliances, divestitures, and other
strategic events resulting from portfolio management actions and
other evolving business strategies; (11) operational execution,
including the extent to which the Company can realize the benefits
of planned productivity improvements, as well as the impact of
organizational restructuring activities; (12) financial market
risks that may affect the Company's funding obligations under
defined benefit pension and postretirement plans; (13) the
Company's credit ratings and its cost of capital; (14) tax-related
external conditions, including changes in tax rates, laws or
regulations; (15) matters relating to the proposed spin-off of the
Company's Health Care business, including whether the transaction
will be completed, or if completed, will be on the expected terms;
the risk that the expected benefits will not be realized; the risk
that the costs or dis-synergies will exceed the anticipated
amounts; the ability to satisfy the various closing conditions;
potential business disruption; the diversion of management time;
the impact of the transaction (or its pendency) on the Company's
ability to retain talent; potential impacts on the Company's
relationships with its customers, suppliers, employees, regulators
and other counterparties; the ability to realize the desired tax
treatment (including whether an Internal Revenue Service private
letter ruling will be sought or obtained); the risk that any
consents or approvals required will not be obtained; risks
associated with financings that may be undertaken and indebtedness
that may be incurred in connection with the transaction; and (16)
matters relating to the voluntary chapter 11 proceedings of the
Company's subsidiary Aearo Technologies and certain of its
affiliates. Changes in such assumptions or factors could produce
significantly different results. A further description of these
factors is located in the Reports under "Cautionary Note Concerning
Factors That May Affect Future Results" and "Risk Factors" in Part
I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part
II, Item 1A (Quarterly Reports). The Company assumes no obligation
to update any forward-looking statements discussed herein as a
result of new information or future events or developments.
About 3M
3M (NYSE: MMM) believes science helps create a brighter
world for everyone. By unlocking the power of people, ideas and
science to reimagine what's possible, our global team uniquely
addresses the opportunities and challenges of our
customers, communities, and planet. Learn how we're working to
improve lives and make what's next at 3M.com/news or
on Twitter at @3M or @3MNews.
3M Media Contact:
Jennifer Ehrlich, 651-733-8805
or 3Mnews@mmm.com
3M Investor Contacts:
Bruce Jermeland, 651-733-1807
Diane Farrow, 612-202-2449
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