Activist investor Nelson Peltz acquires stake in 3M subsidiary

Nelson Peltz, a well-known activist investor, through his investment firm Trian Fund Management, has acquired a stake in Solventum Corp., which was formed as a separate public company after a spin-off from 3M Co.

Trian thus became one of the largest shareholders in the company, which currently has a market value of about $9.4 billion, a Trian representative said in an emailed statement, confirming a Bloomberg report. The size of the stake that Trian owns has not yet been specified.

Trian, based in New York, has reached out to Solventum to discuss ways to increase shareholder value. The activist investor believes the company should re-accelerate organic growth, restore margins and consider simplifying its portfolio through asset sales, Trian said.

"Trian looks forward to a constructive dialogue with Solventum's management and board of directors," the statement said.

According to informed sources who wished to remain anonymous, Trian believes the proposed changes will allow the company to reduce debt and introduce a dividend.

"We are focused on executing our previously articulated strategy to accelerate revenue growth, margins, improve free cash flow and optimise our portfolio," Solventum said in an emailed statement. "We welcome shareholder feedback and look forward to working with Trian as well as all of our shareholders."

Solventum has four main business areas: medical supplies, dental supplies, filtration technology and information management software, according to its website. Ithas lost nearly one-third of its value since its spinoff, while shares of its former parent, 3M $MMM, have risen more than 20%.

3M still owns a nearly 20% stake in Solventum, Bloomberg data shows. Earlier this month, 3M announced that Chief Financial Officer Monish Patolawala, who helped with the spin-off, had resigned from his post.

Trian has a strong history as a challenger on the boards of large consumer, media and industrial companies. He has been involved in some of the most iconic spin-offs in the U.S. corporate world, including the spinoff of Kraft Foods Inc. more than a decade ago that led to the creation of Mondelez International Inc. today, a nearly $90 billion company.

Trian also invested in General Electric Co. which in recent years has made spin-offs of its health care and aerospace units.

Source: Yahoo Finance, CNN.

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