Solventum stock rises following Thermo Fisher deal

Published 25/02/2025, 17:02
© Reuters.

Investing.com -- Shares of Solventum Corp (NYSE:SOLV) climbed 10% today after the company announced the sale of its Purification & Filtration business to Thermo Fisher Scientific Inc (NYSE:TMO) for $4.1 billion. The transaction is expected to be neutral to Solventum’s earnings per share (EPS) in 2025 and is anticipated to bring in approximately $3.4 billion in net proceeds, which Solventum plans to use primarily for debt reduction.

Solventum’s CEO, Bryan Hanson, explained that the sale is a strategic move as part of the company’s transformation plan and is aimed at enhancing strategic focus and improving key financial metrics. The deal is also expected to significantly strengthen Solventum’s balance sheet by reducing leverage. Hanson emphasized that the transition for employees, customers, and other stakeholders is a priority and expressed confidence that Thermo Fisher would continue to grow the business and deliver solutions to customers.

The Purification & Filtration business, which provides filters and membranes for various industries, including biopharmaceutical manufacturing and food and beverage production, is slated to become part of Thermo Fisher’s portfolio. The sale is subject to regulatory approval and customary closing conditions and is projected to be completed by the end of 2025.

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