3M sells pharmaceuticals business for $2.1 billion

Graceway Pharmaceuticals will buy 3M’s pharmaceutical operations in the US, Canada and Latin America for $875 million and Swedish-based Meda AB will acquire the company’s European drugs business for $857 million.

Additionally, Ironbridge Capital and Archer Capital have agreed to acquire 3M’s pharmaceutical operations in the Asia Pacific region, including Australia and South Africa for $349 million.

Graceway and 3M will also enter into a technology access and development agreement. Graceway will be acquiring a number of branded pharmaceutical products in therapeutic areas including dermatology, respiratory and women’s health. As part of the transaction, Chester Valley Pharmaceuticals, a specialty dermatology company will merge into Graceway.

Meda said that it had acquired a pharmaceutical portfolio which included three products used to fight skin diseases, cardiac arrhythmia and angina pectoris. Meda also commented that the acquisition had the potential to add about $280 million to its business.

There are approximately 1,050 employees in 3M’s Pharmaceuticals Division worldwide. It is estimated that approximately 70% of those employees will receive employment opportunities with the acquiring companies.