Industrial manufacturing conglomerate 3M continues to refine its business focus, with the company sharing Oct. 21 that it has agreed to sell off its Precision Grinding & Finishing business in a move aimed at sharpening 3M’s portfolio and reinforcing its transformation agenda. 

In a earnings call with analysts to discuss the company’s third quarter financial results, Chairman and CEO Bill Brown shared the divestment news for the Precision Grinding & Finishing (PGF), which is part of 3M’s SBIG Abrasives unit.

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With annual sales of about $130 million, PGF accounts for less than 1% of 3M’s total annual revenue, but Brown noted that it “has been a drag on results” with over a decade of sales decline and that the business is supported by seven “underutilized” factories across the U.S., Europe and China.

3M recorded a pretax charge of around $161 million for the deal.

The St. Paul, MN-based company did not disclose what party it is selling the PGF business to, but said the transaction is expected to close in the first half of 2026.

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Brown added that the pending sale aligns with the 3M’s ongoing assessment of roughly 2 to 3% of revenues that may be exited or sold as part of its strategic review that has been ongoing since February. This follows 3M’s sales of its healthcare business in 2024.

“This is a good outcome for shareholders, and it’s indicative of the portfolio shaping we spoke about at Investor Day that enables us to be a more focused and higher performing enterprise,” Brown said.

Additionally, 3M CFO Anurag Mageshwari said the company spent $14 million during the third quarter on long-term transformation efforts aimed at redesigning the company’s manufacturing, distribution and business process services and locations.

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3M 3Q Financial Results

The divestment update followed 3M’s release of its third quarter financials, which reflected core business momentum and improved execution across key units.

3M’s Safety & Industrial unit — the company’s largest segment by revenue — led the way with 5.4% net sales growth year-over-year to $2.92 billion, with organic sales up 4.1%. The company pointed to strong underlying demand for adhesives, abrasives, roofing granules and industrial tapes, particularly across China and China-export channels. Organic growth accelerated and margin improvement was driven by pricing, productivity gains and favorable mix. 

Overall, 3M posted 3Q sales of $6.52 billion that grew 3.5% year-over-year, with organic growth of 2.9%. Net profit of $834 million trailed the $1.37 billion of a year earlier.

Here’s how 3M’s 3Q organic sales performed by end market, in order of largest to smallest:

• General industrial: +Mid single-digits
• Safety: +Mid single-digits
• Electronics: +Mid single-digits
• Consumer: Flat
• Auto/Aftermarket: -Mid single-digits