Peltz’s Trian Fund says 3M’s Solventum spin-off not living up to potential

(Reuters) – Nelson Peltz’s Trian Fund Management said in a letter to shareholders on Wednesday that medical device maker Solventum’s separation from 3M has not been living up to its potential.

In the letter, Trian suggested that the company should simplify its segments to improve execution at its core medical surgery business. Its other three segments — dental solutions, health info systems and purification & filtration — bring in 45% of sales.

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

“Given performance declines, Trian initiated dialogues with management and the board, noting that Solventum would benefit from increased engagement with Trian and other shareholders to assist in formulating a more ambitious plan to drive performance … to date, there has not been sufficient progress,” the fund said.

Trian said it owns around 5% of Solventum’s shares and is the largest active shareholder.

Solventum did not immediately respond to a Reuters request for comment.

(Reporting by Puyaan Singh in Bengaluru; Editing by Alan Barona)