Nelson Peltz’s Trian to push Solventum to further simplify business, WSJ reports

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(Reuters) – Activist investor Nelson Peltz’s Trian Fund Management plans to push Solventum for further business separations following the company’s $4.1 billion filtration unit sale, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Contract drug manufacturer Thermo Fisher Scientific said on Tuesday it would buy Solventum’s purification and filtration business for about $4.1 billion.

Trian said in a statement on Wednesday it considers the deal “an important first step in the company’s value creation journey” and added that there is a meaningful cost reduction opportunity at Solventum.

The hedge fund, which owns around 5% of Solventum’s shares and is the largest active shareholder, further said that it believes Solventum “should be able to deliver faster organic growth and higher margins as a focused, standalone company”.

In January, Trian said in a letter to Solventum’s shareholders that the company should simplify its segments to improve execution at its core medical surgery business.

The divestitures could accelerate Solventum’s ability to reduce debt and help the company allocate resources for dividends, share repurchases and mergers and acquisitions, Peltz’s fund had said.

A spokesperson for Solventum said, “We are excited about the rapid progress we are making to transform Solventum and look forward to continuing to drive value for shareholders.”

(Reporting by Sneha S K in Bengaluru; Editing by Mohammed Safi Shamsi)