3M has agreed to sell substantially all of its drug-delivery business (except its transdermal drug-delivery component business) to an affiliate of the investment firm, Altaris Capital Partners, for $650 million.

As part of the transaction, 3M will retain a minority interest in the business alongside Altaris. 3M will receive approximately $650 million in total consideration, including cash, an interest-bearing security, and a 17% noncontrolling interest in the new company. 3M will retain its transdermal drug-delivery components business. 3M partners with pharmaceutical and biotech companies to provide  inhalation, transdermal, microneedle, and conventional drug-delivery technologies.. The business that is being divested has annual global sales of approximately $380 million.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2020. Approximately 900 of 3M’s employees are expected to join the new company upon completion of the sale.

Source: 3M, Altaris Capital Partners