3M to sell drug delivery business to Altaris Capital Partners

St. Paul, Minn.–based conglomerate 3M Co. has entered into an agreement to sell substantially all of its drug-delivery business to an affiliate of Altaris Capital Partners LLC for approximately US$650 million in total consideration, including cash,

In a statement, 3M said its business is a global leader in drug delivery that partners with pharmaceutical and biotech companies to develop and manufacture pharmaceutical products using inhalation, transdermal, micro-needle, and conventional drug-delivery technologies. 3M will retain its transdermal drug delivery components business.

The business that is being divested has annual global sales of approximately US$380 million.

The transaction is expected to close in the first half of 2020. About 900 3M employees, who primarily support the business, are expected to join the new company upon completion of the sale.

Headquartered in New York City, Altaris is an investment firm focused exclusively on the healthcare industry.