Minnesota-based 3M Co. agreed to divest substantially all of its drug delivery business to an affiliate of Altaris Capital Partners LLC for approximately $650 million, inclusive of cash.

3M expects to earn a net gain of 45 cents to 50 cents per share from the sale.

Following completion, pegged for the first half of 2020, 3M's ownership interest in the drug delivery business will be recorded using the equity method of accounting.

Morgan Stanley & Co. LLC served as financial adviser, and Cleary Gottlieb Steen & Hamilton LLP was legal counsel to 3M on the transaction.