A couple of days after announcing its biggest acquisition in two years, 3M said Wednesday that it will restructure its major businesses into five divisions instead of six.
The five business groups will be: Consumer, Industrial, Health Care and two newly formed groups: Safety & Graphics and Electronics & Energy. The industrial group is the largest, with $9.6 billion in sales in 2011.
"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," said Inge Thulin, 3M chairman, president and chief executive officer. "By building scale more broadly, we create critical mass in each business group to take full advantage of innovation and commercialization opportunities."
3M said on Monday that it would buy California-based Ceradyne, an industrial ceramics maker, for $860 million. The company is also shifting around some executives. Electronics & Energy will be led by Mike Kelly, an executive vice president and former head of 3M's Display and Graphics business.
Safety & Graphics is led by Executive Vice President Julie Bushman, former head of 3M's Safety, Security and Protection Services business. Industrial, led by Executive Vice President Brad Sauer, remains unchanged, with the exception of Renewable Energy moving to Electronics & Energy. Sauer formerly led 3M's Health Care business. Health Care, led by Executive Vice President Joaquin Delgado, remains unchanged. Delgado formerly led 3M's Electro and Communications business.
Consumer is also unchanged and will continue to be led by Executive Vice President Mike Vale.
The company named Chris Holmes a senior vice president, Corporate Supply Chain Operations, succeeding John Woodworth, who has announced his intention to retire. Holmes was formerly executive vice president of Industrial and Transportation business.
Adam Belz • 612-673-4405 Twitter: @adambelz