Peltz's Trian Fund says 3M's Solventum spin-off not living up to potential (updated)

Solventum

08/01/2025 18:31

(Adds details throughout, ownership in paragraph 5)
       Jan 8 (Reuters) - Nelson Peltz's Trian Fund Management said in a letter to shareholders
on Wednesday that medical device maker Solventum's  SOLV.N  separation from 3M  MMM.N  has not
been living up to its potential.
    In the letter, Trian suggested that the company should simplify its segments to improve 
execution at its core medical surgery business. Its other three segments — dental solutions,
health info systems and purification & filtration — bring in 45% of sales.
    Trian said divestitures could accelerate Solventum's ability to reduce debt and help the
company allocate resources for dividends, share repurchases and mergers and acquisitions.
    "Given performance declines, Trian initiated dialogues with management and the board, noting
that Solventum would benefit from increased engagement with Trian and other shareholders to
assist in formulating a more ambitious plan to drive performance ... to date, there has not been
sufficient progress," the fund said.
    Trian said it owns around 5% of Solventum's shares and is the largest active shareholder.
    Solventum did not immediately respond to a Reuters request for comment.
    

 (Reporting by Puyaan Singh in Bengaluru; Editing by Alan Barona)
 ((Puyaan.Singh@thomsonreuters.com))