As here (formerly) 3M
fanboys were probably also here because of the (then) dividend, after the phoenix 🐦🔥 from the ashes --> see 3M article, does anyone still know IN - Solventum?!
Yes, many wanted to book out the stock (hardly tradable in Germany).
From 64 USD it went rapidly downhill to 48 USD
the grief was high with 3M.
After 16 months and up 90%, the stock is now at its ATH of USD 86
Buy and hold?
The acquisition of Acera is intended to close an important gap in Solventum's portfolio in the field of modern wound care, particularly in the US market, on which Acera focuses.
Transaction is expected to be slightly dilutive to adjusted earnings per share in 2026 before being accretive to earnings from 2027 onwards as margins improve through revenue growth and savings in administrative and overhead costs.
Solventum addressed investor concerns regarding recent changes to the Centers for Medicare & Medicaid Services (CMS) reimbursement model, noting that these primarily affect biologics in the non-acute setting.
The company emphasized that Acera's Restrata products are synthetic and sold exclusively in hospitals, limiting the risk from these reimbursement changes.
Regarding the announcement of the share buyback worth
1 billion, Solventum stated that the timing of the buyback was largely coincidental to the acquisition announcement.
The company explained that the share buyback program was not explicitly included in the calculations to achieve the medium-term earnings per share target of 10% compound annual growth rate until 2028.
This share buyback contributes to Solventum's high shareholder return despite the non-payment of dividends to shareholders.