Solventum Shares Are Up Today: What's Going On?

Solventum Corp SOLV shares are trading higher Tuesday after the company announced it will sell its purification and filtration business to Thermo Fisher for $4.1 billion in cash.

What To Know: The deal, expected to close by the end of 2025 pending regulatory approvals, will provide Solventum with approximately $3.4 billion in net proceeds, which will primarily be used to pay down debt.

CEO Bryan Hanson stated this sale is a key part of the company's broader transformation strategy, allowing it to sharpen its focus on core growth areas while strengthening its balance sheet and reducing leverage.

“The sale of the Purification & Filtration business is part of phase three of our transformation plan and follows a thorough analysis of the value and strategic alignment of our businesses,” said Hanson. 

The purification and filtration business, which supplies filters and membranes for biopharmaceuticals, medical technology, microelectronics and food and beverage production, will transition to Thermo Fisher, which is expected to invest in its continued growth.

Solventum will discuss the transaction further during its fourth-quarter and full-year 2024 earnings call on Feb. 27, followed by an Investor Day in New York City on March 20, where it will outline its long-term strategy and progress as an independent public company.

SOLV Price Action: Solventum shares were up 9.54% at $83.56 at the time of publication Tuesday, according to Benzinga Pro.

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