Altaris Capital Partners’ $650 Million Acquisition of 3M Drug Delivery Business


Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel to 3M. Morgan Stanley & Co. LLC acted as financial advisor to 3M.

3M entered into an agreement to sell substantially all of its drug delivery business to an affiliate of Altaris Capital Partners, LLC. Subject to closing and other adjustments, 3M will receive approximately $650 million in total consideration, including cash, an interest bearing security, and a 17 percent noncontrolling interest in the new, independent company.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2020.

The business is a global leader in drug delivery that partners with pharmaceutical and biotech companies to develop and manufacture pharmaceutical products using unique inhalation, transdermal, microneedle, and conventional drug delivery technologies. 3M will retain its transdermal drug delivery components business. The business that is being divested has annual global sales of approximately $380 million.

The Cleary M&A team included partner Aaron Meyers (Picture) and associates Kelsey MacElroy and Nicole Idoko. Partner Diana Wollman and associate Rachel Shapiro, from the New York office, and partner Richard Sultman and associate Beth Leggate, from the London office, are advising on tax matters. Partner Daniel Ilan and associates Jane Rosen and Eunice Park are advising on intellectual property matters. Counsel Shirley Lo and associate Renata Stepanov are advising on finance matters, with assistance from Rich Lincer. Counsels Rick Bidstrup and Beau Sterling are advising on environmental matters. Counsel Kathy Bradish and counsel Paul Gilbert are advising on antitrust matters. Partners Jeff Karpf and SK Kang and associate Nina Bell are advising on securities law matters.

Involved fees earner: Nina Bell – Cleary Gottlieb Steen & Hamilton; Rick Bidstrup – Cleary Gottlieb Steen & Hamilton; Kathleen Bradish – Cleary Gottlieb Steen & Hamilton; Paul Gilbert – Cleary Gottlieb Steen & Hamilton; Nicole Idoko – Cleary Gottlieb Steen & Hamilton; Daniel Ilan – Cleary Gottlieb Steen & Hamilton; Sung Kang – Cleary Gottlieb Steen & Hamilton; Jeff Karpf – Cleary Gottlieb Steen & Hamilton; Beth Leggate – Cleary Gottlieb Steen & Hamilton; Richard Lincer – Cleary Gottlieb Steen & Hamilton; Shirley Lo – Cleary Gottlieb Steen & Hamilton; Kelsey MacElroy – Cleary Gottlieb Steen & Hamilton; Aaron Meyers – Cleary Gottlieb Steen & Hamilton; Eunice Park – Cleary Gottlieb Steen & Hamilton; Jane Rosen – Cleary Gottlieb Steen & Hamilton; Renata Stepanov – Cleary Gottlieb Steen & Hamilton; Beau Sterling – Cleary Gottlieb Steen & Hamilton; Richard Sultman – Cleary Gottlieb Steen & Hamilton; Diana Wollman – Cleary Gottlieb Steen & Hamilton; Rachel Shapiro – Weil, Gotshal & Manges;

Law Firms: Cleary Gottlieb Steen & Hamilton; Weil, Gotshal & Manges;

Clients: 3M Company ;