Yahoo Finance 3M (MMM) to Divest Neoplast & Neobun Brands to Selic Corp
3M Company MMM recently entered into an agreement to sell its Neoplast and Neobun brands, along with related assets in Thailand and some other Southeast Asian countries, to Selic Corp Public Company Limited as part of its strategic portfolio management. 3M will also divest the manufacturing assets of its Ladlumkaew, Thailand, facility to Selic Corp.
Neoplast and Neobun brands are part of 3M’s Consumer Health & Safety Division (“CHSD”), including sports and medical tapes, bandages and medicated products for the consumer and healthcare industry. These brands, which make skin health and wellness products, are sold primarily in Thailand and Southeast Asia.
By exiting these businesses, 3M intends to focus on its core areas within the CHSD.
3M Company Price
3M Company price | 3M Company Quote
As previously announced, 3M will shut down its Ladlumkaew plant by August end. This will affect around 250 employees in Thailand. Those impacted will be eligible for severance and outplacement assistance.
The divestiture of the Neoplast and Neobun brands is expected to be completed in the fourth quarter of 2022, and is not likely to have a material impact on 3M's financial results.
3M has lately been focused on restructuring its portfolio to enhance shareholder value. In fourth-quarter 2021, the company inked a deal to divest its food safety business. In March 2022, it sold its floor care products business. The successive divestments are expected to help MMM focus on its core business areas and drive growth.
Zacks Rank & Key Picks
3M carries a Zacks Rank #4 (Sell).
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Griffon has an estimated earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the company’s current-year earnings has been revised upward by 28.9% in the past 60 days. Shares of GFF have gained around 13% in a year.
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