3M has decided to sell off most of its drug-delivery business focus more resources on its core healthcare business. But the St. Paul, MN-based company has worked out a deal that will allow it to retain a share in the value of the divested buiness.

The company formed its drug-delivery business back in 2000 out of its larger pharmaceutical division in recognition, at the time, of its "significant and unrealized potential for growth as an individual business." Today, the business that is being divested has annual global sales of roughly $380 million.

An affiliate of Altaris Capital Partners has agreed to pay $3M about $650 million in the form of cash, an interest-bearing security, and a 17% noncontrolling interest in the new company that will be formed with the acquired drug-delivery assets.

3M's drug-delivery business partners with pharmaceutical and biotech companies to develop and manufacture pharmaceutical products using unique inhalation, transdermal, microneedle, and conventional drug delivery technologies. 3M is keeping its transdermal drug delivery components business though.

“The drug delivery business is a leading provider of transdermal and inhalation delivery technologies,” said Michael Roman, chairman and CEO at 3M. “This transaction will allow us to focus more resources on our core health care business as well as retain a share in the value of the drug delivery business as it grows over the coming years.”

The deal is expected to close in the first half of 2020, and roughly 900 3M employees will join the new company after the sale.

3M got off to a rocky start in 2019 with disappointing earnings in the first quarter and ended up laying off 2,000 workers.