3M to spin off health care business and create two listed companies

3M Co.
MMM,
+5.52%
said Tuesday it will spin off its health care business to create two public companies to pursue their growth plans. The new 3M will be a global material science company with a range of industrial and consumer markets, while the health care company will focus on wound care, healthcare IT, oral care and biopharma filtration. The former had $26.8 billion in sales in 2021, while health care had $8.6 billion. The spinoff is expected to be completed by the end of 2023. 3M announced the move as its reported second-quarter earnings and offered an update on litigation related to Combat Arms earplugs. Shares were down 1% premarket and have fallen 24% in the year to date, while the S&P 500
SPX,
-0.49%
has fallen 17%.