By Denny Jacob
Thermo Fisher Scientific agreed to acquire Solventum's purification and filtration business for $4.1 billion in cash, confirming a report first made in The Wall Street Journal.
The maker of microscopes and other life-sciences and laboratory equipment said the acquisition broadens its capabilities in the development and manufacturing of biologics, spanning upstream and downstream workflows.
Thermo Fisher said the acquisition is expected to generate mid- to high-single digit organic growth and the application of the PPI business system will enable strong margin expansion and meaningful synergy realization. In the first year of ownership, it expects the transaction is expected to be dilutive to adjusted earnings per share by 6 cents.
The Waltham, Mass., company expects to realize about $125 million of adjusted operating income from revenue and cost synergies by year five following the close.
The deal is expected to be completed by the end of 2025. Once completed, Solventum's purification and filtration business will become part of Thermo Fisher's life sciences solutions segment.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
February 25, 2025 08:50 ET (13:50 GMT)
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