Thread regarding 3M layoffs

The synergy on non-wovens between CBG, CSD, ASD and AAD is huge. If you let CBG go, rest of the divisions will be hurt.

@Told You So

I still haven't said I think a CBG sell off is likely, I said Monish is going to try to do it. Two different things.

There is still the problem of splitting manufacturing off for CBG that is embedded in mostly SIBG. Some stuff is really easy to separate (like Cynthiana), some is much harder.

@ Varys

It’s amusing your tune on a potential CBG sell off changed from a year ago when I posted the same and you down played my comment.

How would selling off CBG work? Besides like Cynthiana aren’t their products made in other BG’s factories?

Saint-Gobain is 3M Europe.

CBG Group President KCRB just sold 10% of her shares this week at $92.32. Maybe she's not all in on the bigger bolder vision? Or maybe she wanted to pay cash for a new model Y?

CBG has never been a true CPG company. Unfortunately, It's run exactly like the B2B business. Leaders with no true CPG background making decisions based on manufacturing efficiency and lab managers getting major say in what's created versus consumer insights and trends leading the way. "Oh we have a great adhesive in IATD, CBG should use it" " Oh we can make this sponge even scrubbier bc we have a new abrasive". Meanwhile people are buying sponges that look like faces from other companies bc they are fun. People have been on the same business for decades just tweaking claims on packaging and thinking they are "marketing" directors. It's a joke. Getting sold off would be a major revitalization of all the brands. Unfortunately, people who are serious about growing CPG careers and not just blindly following nepotistic leaders left years ago.The writing has been on the wall for quite some time.

You forgot S C Johnson as a potential acquirer

BREAK IT UP

I think Monish will try to sell CBG off. Either as a group or in parts.

Better question for discussion is who would be a buyer for a complete (or mostly complete) CBG buy?

Requirements:

• Needs to be big enough to take on a $5 billion in sales, capable of a $10B+ acquisition price.
• Should, as already pointed out, be competent in the consumer goods space already.
• Either reinforcing or meshing with CBGs product lines.

Some possible ideas in no particular order:

• Clorox - Would be a stretch for them, but decent aisle alignment.
• Church and Dwight - Similar to Clorox
• Henkel - Not the greatest technical alignment, but Henkel already sells industrial-ish products into consumer.
• Kimberly-Clark - Similar to Henkel, but adds some more household names for them. (Filtrete, Scotch, Thinsulate, Command)

Ideas that don't seem to fit:

• P&G - No real brand synergy, not much product line fit. Not sure what value CBG offers them.
• Unilever - CBG is too small to move the needle for them.

Breaking CBG up, I can see a lot more buyers. It would be not too hard to split the CBG into really logical chunks that more companies would be interested in buying.

With an AIP of about 115%, CBG should be performing great!! Nothing to change 🤣

CBG is a mess, CHIM is a sales disaster, you have 20 plus sales people who get judged on doing 30 sales force entries per week. No sales quota, paid as a group. Sales people without a quota. CBG also has more marketers and people who are high priced overhead.
Selling it to a real consumer product company who be a step up

Not sure where CBG would go. If anything, perhaps ParentCo breaks down BG barriers and transforms to division model.

CBG doesn't have any owned technology. It leaches on other BG and rebrand themselves. Sometime it end up cannabilzing each other, that customers are confused.

Name one CBG product that is not a consumer front for another BG's product? Maybe Command hooks?

3M does not have a handle on any market. It lost it's magic and now is a shadow of its former glory. Slow march to a dividend cut and then bankruptcy. Bankruptcy will be reorganization. Total loss for shareholders and employees will once again be important when the phoenix rises. Right now it's just a toxic mess and getting worse every month.

If it’s sold to another Consumer Company could be for better.

3M doesn’t understand consumer markets.