3M has picked a med-tech veteran — and a former Medtronic executive — to lead the company's $8 billion health care business through its planned spinoff.
Bryan Hanson, currently CEO of Indiana-based medical device company Zimmer Biomet, will join 3M on Sept. 1 as chief executive of the health care business group and oversee its separation into an independent business. The split was first announced last summer and is expected to be completed later this year or early next.
Hanson has led Zimmer Biomet since 2017 and was previously an executive at Medtronic and Covidien.
"His industry expertise, ability to drive growth and track record of building a strong culture and teams will make an immediate impact," 3M CEO Mike Roman said in a news release Tuesday.
Hanson serves on the board of directors for Walgreens' parent company and the Advanced Medical Technology Association. He is a 1989 graduate of Florida State University.
"I look forward to working with the team to more deeply understand and realize the potential of our business as we accelerate our path forward, and build on a legacy of trusted leadership and medical innovation," Hanson, 56, said in a statement.
With $8.4 billion in revenue last year, 3M's health care business produces about a quarter of the company's total sales. The business makes bandages, medical devices and oral care products, as well as creating health care IT solutions.
The remaining 3M will have a roughly 20% stake in the spinoff, which will remained headquartered in Maplewood while a permanent home is sought.
Zimmer Biomet, which had $7 billion in revenue last year, has paid Hanson between $13 million and $16.5 million over the past three years, according to company filings, which includes the grant date value of long-term equity awards. He had a $1.2 million base salary there.
Hanson brings experience navigating litigation, common in the med-tech industry, as Zimmer Biomet has been involved in patent, liability and commercial lawsuits in recent years. A 3M medical device, the Bair Hugger warming blanket, is the subject of ongoing product liability lawsuits.
3M on Tuesday also named Carrie Cox as chair of the board of directors for the new health company, which does not yet have a name.
Cox has spent time in management and on boards at a variety of biotechnology and pharmaceutical companies, including Organon and Humacyte.
"She has been serving as an adviser to 3M, and played a key role in the selection process of Bryan as CEO," Roman said.
3M originally planned to have the spinoff complete by the end of 2023 but has recently acknowledged it could take a few extra months.
"We continue to work toward closing the transaction by year-end 2023 or early 2024, subject to the required conditions, as well as additional factors such as conditions in the equity and debt markets, other external conditions and developments involving 3M or any of its businesses," the company said in a statement Tuesday.
In another change, 3M Chief Financial Officer Monish Patolawala will add president to his title next month, giving the CFO more say over the company's global strategy and potentially indicating a successor for Roman as CEO.
The company has not had a president since former CEO Inge Thulin held the role from 2012 to 2018.
Star Tribune staff writer Patrick Kennedy contributed to this story.
