3M announced it has entered into agreements to sell certain assets associated with its dental local anesthetic portfolio, based in Seefeld, Germany, to Pierrel S.p.A., a global provider of services for the pharmaceutical industry, for a purchase price of $70 million, subject to closing and other adjustments.
3M's local anesthetic products, sold primarily in Europe and Asia, include products sold under the Ubistesin, Xylestesin and Mepivastesin brands together with related syringe and needle products and are part of the dental materials business in 3M's Oral Care Solutions Division.
As part of ongoing strategic portfolio management, 3M has decided to exit these products and prioritize investments that leverage its Health Care business' core Oral Care technologies.
"We believe that these products will be well positioned with Pierrel," said Karim Mansour, president, 3M Oral Care Solutions Division. "3M will continue to invest in oral care solutions for our Europe and Asia customers and those around the world."
These local anesthetic products had annual sales in 2022 of approximately $30 million and the impact of ongoing operations were not material to 3M's financial results.
The transaction, which is subject to information or consultation requirements with relevant works councils and other closing conditions, is expected to be completed in the third quarter of 2023. 3M expects to record a gain upon this business's divestiture which it will reflect as an adjustment in arriving at results, adjusted for special items. After the transaction closes, 3M will provide transition support to Pierrel to help facilitate a smooth transition for customers.
3M will retain ownership of its Seefeld facility and operations, which support 3M's Oral Care business.
