3M Restructures Biz Units, Shifts Around Execs.
3M Company, Inc., said Wednesday that it has restructured itself, consolidating its six major business segments down to five.
The restructuring takes effect immediately, and the announcement comes just two days after 3M said it agreed to buy California-based industrial ceramics maker Ceradyne for $860 million.
Three of the previous business groups—consumer, industrial, and health care—will retain their names. Joining them are two newly formed groups: safety and graphics, and electronics and energy.
Meanwhile, the former display and graphics; electro and communications; and safety, security, and protection services units no longer exist—and the products and services within them have been integrated into the other groups.
3M also shifted around some of its senior executives.
Brad Sauer, who formerly led 3M's health care business segment, will now lead its industrial group, which is the company’s largest with $9.6 billion in revenue last year. Meanwhile, Joaquin Delgado, who was formerly head of the electro and communications business, will now be head of the company’s health care group, which had $5 billion in sales last year.
Former safety, security, and graphics head Julie Bushman will lead the new $5.5 billion safety and graphics division. And Mike Kelly, who led display and graphics, will now lead the new $5.7 billion electronics and energy division.
Meanwhile, 3M’s consumer group, which had $4.2 billion in 2011 revenue, will continue to be led by Mike Vale.
“The change is a natural outcome of our strategy to increase relevance to our customers and to broaden our presence in the markets we serve,” 3M Chairman, President, and CEO Inge Thulin, said in a statement.
According to a Star Tribune report, Thulin, who took the CEO job just seven months ago, is restructuring the company based on the idea that each business category will be broader, simpler, and designed to house services and products aimed at similar customers. The realignment reportedly also reflects the company’s new focus on the booming energy industry. To read the full report, click here.
3M is among Minnesota’s five-largest public companies based on revenue, which totaled $29.6 billion in 2011.