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December 13, 2019

3M to divest drug delivery business to Altaris Capital in $650m deal

US-based conglomerate 3M has finalised a deal to divest its drug delivery business for approximately $650m to an affiliate of investment firm Altaris Capital Partners.

US-based conglomerate 3M has finalised a deal to divest its drug delivery business for approximately $650m to an affiliate of investment firm Altaris Capital Partners.

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What is driving M&A activity in the MedTech space?

The COVID-19 pandemic has left an indelible mark on the MedTech landscape. Changes in how healthcare is delivered, and new treatment modalities, are creating opportunities and challenges for both new and traditional players. As companies sought out opportunities during the pandemic-driven downturn, the number and value of mergers and acquisition deals in the MedTech space increased. Companies worked to reposition themselves in the newly aligned healthcare world, but with further economic turmoil expected: will these trends be repeated? And what tech areas should firms be looking to expand their capabilities into? GlobalData’s report, “Themes driving M&A activity in the Medical Devices Sector, Q1 2022,” draws upon GlobalData’s extensive MedTech deals databases, highlighting major trends and hot themes in M&A activity. This report will assist you in:
  • Understanding value and volume trends in M&A from Q1 2018 to Q1 2022
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  • Understanding the leading tech trends in Q1 2022 M&A activity
  • Knowing the key deals that occurred during Q1 2022
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Under the agreement, 3M will own a 17% non-controlling interest in the entity. The deal, however, does not include 3M’s transdermal drug delivery components business.

The sold business collaborates with pharmaceutical and biotech firms to produce pharmaceutical products leveraging inhalation, transdermal, microneedle and conventional drug delivery technologies.

The business has annual global sales of around $380m, 3M said in its press statement.

3M chairman and CEO Michael Roman said: “The drug delivery business is a leading provider of transdermal and inhalation delivery technologies.

“This transaction will allow us to focus more resources on our core health care business as well as retain a share in the value of the drug delivery business as it grows over the coming years.”

Subject to receipt of regulatory permissions, the acquisition is expected to conclude in the first half of next year.

As part of the deal, 900 members of staff divested will transition to the venture following the deal’s completion.

3M noted that it hopes to gain $0.45 to $0.50 per share from the deal.

Divestment of the drug delivery business follows 3M’s acquisition of wound care solutions provider Acelity and its KCI subsidiaries globally for around $6.7bn in October.

It acquired the firm from a consortium of funds advised by Apax Partners, along with Canada Pension Plan Investment Board (CPPIB) and the Public Sector Pension Investment Board (PSP Investments).

The deal, first announced in May, is part 3M’s strategy to boost presence in advanced and surgical wound care.

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Free Report
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What is driving M&A activity in the MedTech space?

The COVID-19 pandemic has left an indelible mark on the MedTech landscape. Changes in how healthcare is delivered, and new treatment modalities, are creating opportunities and challenges for both new and traditional players. As companies sought out opportunities during the pandemic-driven downturn, the number and value of mergers and acquisition deals in the MedTech space increased. Companies worked to reposition themselves in the newly aligned healthcare world, but with further economic turmoil expected: will these trends be repeated? And what tech areas should firms be looking to expand their capabilities into? GlobalData’s report, “Themes driving M&A activity in the Medical Devices Sector, Q1 2022,” draws upon GlobalData’s extensive MedTech deals databases, highlighting major trends and hot themes in M&A activity. This report will assist you in:
  • Understanding value and volume trends in M&A from Q1 2018 to Q1 2022
  • Understanding regional trends in M&A activity
  • Understanding which medical device sectors are leading M&A activity, and which are lagging
  • Understanding the leading tech trends in Q1 2022 M&A activity
  • Knowing the key deals that occurred during Q1 2022
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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