Thermo Fisher to buy Purification & Filtration business from Solventum for $4.1B

Thermo Fisher (TMO) announced that the company has entered into a definitive agreement with Solventum (SOLV) to acquire Solventum’s Purification & Filtration business for approximately $4.1B in cash. The Solventum business operates globally with sites across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region, and has approximately 2,500 colleagues. In 2024, Solventum’s Purification & Filtration business generated approximately $1B of revenue. The transaction is expected to be completed by the end of 2025 and is subject to customary closing conditions and regulatory approvals. Once the transaction closes, Solventum’s Purification & Filtration business will become part of Thermo Fisher’s Life Sciences Solutions segment. Solventum’s Purification & Filtration, as part of Thermo Fisher, 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, the transaction is expected to be dilutive to adjusted EPS by 6c. Excluding financing costs, the transaction is expected to be accretive by 28c in that period. Thermo Fisher expects to realize approximately $125M of adjusted operating income from revenue and cost synergies by year five following the close.