Thermo Fisher Bets Big On Bioproduction With Solventum's Unit Deal Worth $4.1 Billion

On Tuesday, Thermo Fisher Scientific Inc. TMO agreed to acquire Solventum’s SOLV Purification & Filtration business for approximately $4.1 billion in cash.

Solventum’s Purification & Filtration business provides purification and filtration technologies for the production of biologics, medical technologies and industrial applications.

The Solventum business operates globally, with sites in the Americas, Europe, the Middle East, Africa and the Asia-Pacific region. The company has approximately 2,500 employees.

Also Read: Thermo Fisher Q4 Earnings Beat Estimates, Margin Expands

In 2024, Solventum’s Purification & Filtration business generated approximately $1 billion in revenue.

Solventum’s Purification & Filtration business complements Thermo Fisher’s bioproduction business.

“The addition of Solventum’s business is an outstanding strategic fit with our company and will create significant value for our customers and shareholders,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher.

The transaction is expected to be completed by the end of 2025.

The Purification & Filtration business will become part of Thermo Fisher’s Life Sciences Solutions segment and is expected to generate mid-to-high-single-digit organic growth. The application of the PPI Business System will enable strong margin expansion and meaningful synergy realization.

The transaction is expected to be dilutive to adjusted EPS by $0.06 in the first year of ownership.

Excluding financing costs, the transaction is expected to be accretive by $0.28 in that period.

Thermo Fisher expects to realize approximately $125 million of adjusted operating income from revenue and cost synergies by year five following the close.

Price Action: TMO stock closed at $535.55 on Monday. SOLV stock is up 1.93% at $77.75 during the premarket session on last check Tuesday.

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