3M today announced that it is exploring strategic alternatives for its
global Health Information Systems business. These alternatives, all of
which are focused on building upon the business’ strong foundation,
could include spinning-off, selling, or retaining and further investing
in the business within 3M.
3M Health Information Systems, a business of 3M Health Care, works with
providers, payers, and government agencies to anticipate and navigate a
changing healthcare landscape. 3M provides healthcare data aggregation,
analysis, and strategic services that help clients move from
volume-based to value-based health care, resulting in millions of
dollars in savings, improved provider performance, and higher quality of
care. 3M’s innovative software is designed to raise the bar for
computer-assisted coding, clinical documentation improvement,
performance monitoring, quality outcomes reporting, and terminology
management.
With nearly 30 years of healthcare industry experience, 3M Health
Information Systems is the go-to choice for more than 5,000 hospitals,
as well as government and commercial payers that want to improve quality
and financial performance. With trailing 12-month revenues of
approximately $730 million, this successful business has delivered
greater than 10-percent compounded annual growth over the past three,
five and 10 years.
“As part of our ongoing portfolio management process, 3M is exploring
alternatives for our Health Information Systems business, a recognized
industry leader in health care coding software, services, and
analytics,” said Inge G. Thulin, 3M chairman, president and chief
executive officer. “Through this process, we are focused on determining
the best path to benefit 3M, its stakeholders, and this business.”
Selection of a strategic direction is anticipated by the end of the
first quarter of 2016. No decision has been made with regard to any
alternatives and there can be no assurance that the exploration of
strategic alternatives will result in any transaction.
3M has retained Goldman, Sachs & Co. as its investment banker to assist
the company in exploring strategic alternatives.
3M Health Care, one of 3M’s five major business groups, provides
world-class innovative products and services that help health care
professionals improve the practice and delivery of patient care. 3M will
continue to invest in and grow its vibrant Health Care business
globally, serving multiple segments of the healthcare and life sciences
sectors.
Forward-Looking Statements
This news release contains
forward-looking information about 3M's financial results and estimates
and business prospects that involve substantial risks and uncertainties.
You can identify these statements by the use of words such as
"anticipate," "estimate," "expect," "aim," "project," "intend," "plan,"
"believe," "will," "should," "could," "target," "forecast" and other
words and terms of similar meaning in connection with any discussion of
future operating or financial performance or business plans or
prospects. Forward-looking statements may include, among other things,
statements relating to the plans, strategies and objectives of 3M for
future operations, including statements relating to a potential
strategic alternative transaction relating to 3M Health Information
Systems, or the terms, timing or structure of any such transactions (or
whether any such transaction will take place at all) and the future
performance of 3M or 3M Health Information Systems if any such
transaction is completed. There can be no assurance that any transaction
or future events will occur as anticipated, if at all, or that actual
results will be as expected. Among the factors that could cause actual
results to differ materially are the following: (1) worldwide economic
and capital markets conditions and other factors beyond the Company's
control, including natural and other disasters affecting the operations
of the Company or its customers and suppliers; (2) the Company's credit
ratings and its cost of capital; (3) competitive conditions and customer
preferences; (4) foreign currency exchange rates and fluctuations in
those rates; (5) the timing and market acceptance of new product
offerings; (6) the availability and cost of purchased components,
compounds, raw materials and energy (including oil and natural gas and
their derivatives) due to shortages, increased demand or supply
interruptions (including those caused by natural and other disasters and
other events); (7) the impact of acquisitions, strategic alliances,
divestitures, and other unusual events resulting from portfolio
management actions and other evolving business strategies, and possible
organizational restructuring; (8) generating fewer productivity
improvements than estimated; (9) unanticipated problems or delays with
the phased implementation of a global enterprise resource planning (ERP)
system, or security breaches and other disruptions to the Company's
information technology infrastructure; (10) risks and uncertainties
related to a potential separation of, or any other transaction relating
to, 3M Health Information Systems; and (11) legal proceedings, including
significant developments that could occur in the legal and regulatory
proceedings described in the Company's Annual Report on Form 10-K for
the year ended December 31, 2014, and its subsequent quarterly reports
on Form 10-Q (the “Reports”). Changes in such assumptions or factors
could produce significantly different results. A further description of
these factors is located in the Reports under "Cautionary Note
Concerning Factors That May Affect Future Results" and "Risk Factors" in
Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part
II, Item 1A (Quarterly Report). The information contained in this news
release is as of the date indicated. The Company assumes no obligation
to update any forward-looking statements contained in this news release
as a result of new information or future events or developments.
About 3M
At 3M, we apply science in collaborative ways to
improve lives daily. With $32 billion in sales, our 90,000 employees
connect with customers all around the world. Learn more about 3M’s
creative solutions to the world’s problems at www.3M.com
or on Twitter @3M or @3MNewsroom.
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