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WALTHAM, Mass. - Thermo Fisher Scientific Inc (BVMF:TMOS34). (NYSE: NYSE:TMO), a global leader in serving science, has announced a definitive agreement to acquire the Purification & Filtration business of Solventum (NYSE: SOLV) for $4.1 billion in cash. This strategic move is set to enhance Thermo Fisher’s bioproduction capabilities and expand its presence in the rapidly growing bioprocessing market.
Solventum’s Purification & Filtration business, which generated approximately $1 billion in revenue in 2024, is recognized for its purification and filtration technologies. These technologies are essential in the production of biologics, medical technologies, and various industrial applications. The business employs about 2,500 people across multiple regions, including the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.
Marc N. Casper, chairman, president, and CEO of Thermo Fisher, emphasized the strategic fit of the acquisition, stating that it will deliver significant value to customers and shareholders. He highlighted the anticipated mid- to high-single digit organic growth and strong margin expansion expected from the integration of Solventum’s business into Thermo Fisher’s Life Sciences Solutions segment.
The transaction is expected to close by the end of 2025, subject to customary closing conditions and regulatory approvals. Thermo Fisher projects that the acquisition will initially be dilutive to adjusted earnings per share (EPS) by $0.06, excluding financing costs, but accretive by $0.28 in the first year of ownership. The company anticipates realizing approximately $125 million of adjusted operating income from revenue and cost synergies by the fifth year following the transaction’s close. According to InvestingPro analysis, Solventum currently trades at an EV/EBITDA multiple of 11.15x, with analysts maintaining price targets ranging from $63 to $82 per share. Get access to more detailed valuation metrics and 12+ additional ProTips with an InvestingPro subscription.
Thermo Fisher, with annual revenues exceeding $40 billion, is committed to supporting its customers in making the world healthier, cleaner, and safer through its technologies, services, and pharmaceutical offerings. The acquisition of Solventum’s Purification & Filtration business represents a continuation of this mission, as well as Thermo Fisher’s disciplined capital deployment strategy.
Advising Thermo Fisher on the deal are WilmerHale as principal deal counsel and Wells Fargo (NYSE:WFC) as exclusive financial advisor. This acquisition is based on a press release statement from Thermo Fisher Scientific Inc.
In other recent news, Solventum Corporation has been the focus of significant attention following its spin-off from 3M. Trian Fund Management, a major shareholder, has expressed concerns about Solventum’s performance as a standalone company, highlighting a decline in growth and margins. Trian suggests that Solventum could enhance its value by focusing on its core MedSurg segment and potentially divesting other segments. This strategy, according to Trian, could lead to better capital allocation and a potential increase in share value to $140 by 2027. Meanwhile, Mizuho (NYSE:MFG) has initiated coverage of Solventum with a Neutral rating and a price target of $70, noting the company’s challenges with below-market growth and margin pressures. Mizuho’s analysis points out Solventum’s high leverage and the need for strategic decisions on product focus and potential divestitures to reduce debt. The firm’s evaluation also highlighted the potential value of Solventum’s Health Information Systems segment if it were to be sold. These developments come as Solventum’s management works on a long-range plan expected to be announced in February.
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