(Bloomberg) -- Activist investor Nelson Peltz’s Trian Fund Management has amassed a stake in 3M Co.’s health-care spinoff Solventum Corp.
Trian is now one of the largest shareholders in Solventum, which became a standalone public company this year and has a market value of about $9.4 billion, a representative for Trian said in an emailed statement, confirming a report by Bloomberg News. The exact size of Trian’s holding couldn’t immediately be learned.
New York-based Trian has reached out to Solventum to discuss ways to unlock 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 engaging constructively with Solventum’s management and board,” according to the statement.
Trian believes the changes it is proposing will allow the company to de-lever and initiate a dividend, said people familiar with the matter, asking not to be identified discussing private information.
“We are intently focused on executing our previously articulated strategy designed to accelerate revenue growth, drive margin expansion, improve free cash flow and optimize the portfolio,” Solventum said in an emailed statement. “We welcome shareholder feedback and look forward to engaging with Trian as we do with all of our shareholders.”
Solventum has four main business categories: medical supply, dental supply, filtration and an information management software business, according to its website. It’s lost nearly a third of its value since its spinoff. Former parent 3M has seen its stock jump more than 20% during the same period.
3M retains a stake of close to 20% in Solventum, Bloomberg-compiled data show. 3M said earlier this month that Chief Financial Officer, Monish Patolawala, who helped steer the spinoff, was stepping down.
Trian has a strong history as a boardroom challenger to consumer, media and industrials giants. It’s been involved in some of the most iconic separations in corporate America, including that of Kraft Foods Inc. more than a decade ago. This would lead to the eventual creation of Mondelez International Inc., an almost $90 billion company today.
Trian has also invested in General Electric Co., which has undertaken spinoffs of its health-care and aerospace units in recent years.
(Updates with Solventum statement in second paragraph)
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