By Lauren Thomas
Thermo Fisher Scientific is nearing a deal for Solventum's purification and filtration business, according to people familiar with the matter.
The details
A transaction is expected to value the filtration business between $3.5 billion and $4 billion, the people added.
A deal could be announced as soon as this week, unless the talks hit any last-minute snags, the people said.
The Wall Street Journal reported in October that Solventum, the healthcare company spun off from 3M last year, had retained bankers to explore a sale of its purification and filtration unit.
The context
Solventum's purification and filtration business reported about $1 billion in revenue in 2023, or about 12% of overall sales. It makes products that help filter commercial and residential water.
Executives have said previously that the company was working on fine-tuning its portfolio, including by getting out of businesses that didn't fit its strategy.
Solventum, which has a market value of more than $13 billion, is focused on wound care, oral care, healthcare information technology and biopharma filtration.
The company is set to report its quarterly results on Thursday.
Thermo has been on the hunt for deals in recent years. The company, which has a market value of more than $200 billion, sells lab equipment, chemicals and tests, among other life-sciences services and products.
Thermo bought pharmaceutical-testing company PPD for more than $15 billion in 2021 and has completed a number of smaller acquisitions since.
Solventum joins a long list of companies that have been streamlining their operations to appease investors. A number of major conglomerates, including most recently Honeywell International, have announced spinoffs or breakups in recent memory.
Activist investor Nelson Peltz's firm Trian Partners has also been pushing for changes at Solventum to boost the stock after building a stake.
Write to Lauren Thomas at lauren.thomas@wsj.com
(END) Dow Jones Newswires
February 24, 2025 18:40 ET (23:40 GMT)
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