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Investing.com -- Activist investor Trian Fund Management is reportedly planning to urge Solventum to separate additional businesses following the company’s $4.1 billion deal to sell its filtration unit, according to the Wall Street Journal, citing individuals who have knowledge of the situation.
The firm, led by Nelson Peltz, has held approximately a 5% stake in Solventum since mid-last year. Solventum, a seller of healthcare products, was spun out from 3M in April 2024.
Trian’s stance is that Solventum should separate its dental products and software businesses and concentrate more on its medical and surgical unit. The firm is pushing for Solventum management to cut costs in its businesses ahead of a possible sale or spinoff.
On Tuesday, Solventum announced it had agreed to sell its purification and filtration unit to Thermo Fisher Scientific (NYSE:TMO). Company executives had previously stated that they were in the process of fine-tuning their portfolio, which included divesting businesses that were not aligned with its strategy.
Trian is expected to release a statement on Wednesday, praising the deal as a positive move. The firm will suggest that the deal seems to confirm its view that Solventum’s costs are excessively high, which is impacting profits. Thermo Fisher, in its announcement, stated that the deal would result in cost savings from the first day.
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