Thermo Fisher Scientific Inc. has announced a definitive agreement to acquire Solventum's Purification & Filtration business for approximately $4.1 billion in cash. This strategic acquisition aims to enhance Thermo Fisher's bioproduction capabilities by integrating Solventum's advanced purification and filtration technologies, which are essential in the production of biologics, medical technologies, and various industrial applications.

Solventum's Purification & Filtration business generated approximately $1 billion in revenue in 2024 and employs about 2,500 people globally. The business operates across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region. Its product portfolio includes filters and membranes used in the manufacturing of biopharmaceuticals, medical technologies, microelectronics, food and beverage products, and drinking water.

Marc N. Casper, Chairman, President, and CEO of Thermo Fisher, stated, "The addition of Solventum’s business is an outstanding strategic fit with our company and will create significant value for our customers and shareholders." He further emphasized that Solventum’s solutions would be valued by their customers and would demonstrate Thermo Fisher's disciplined capital deployment strategy, which has a proven history of generating shareholder value.

Bryan Hanson, CEO of Solventum, commented, "The sale of the Purification & Filtration business is part of phase three of our transformation plan and follows a thorough analysis of the value and strategic alignment of our businesses." He added that the transaction would enhance their strategic focus and key metrics while reducing leverage and significantly strengthening their balance sheet.

The acquisition is expected to close by the end of 2025, subject to customary closing conditions and regulatory approvals. Upon completion, Solventum's Purification & Filtration business will become part of Thermo Fisher's Life Sciences Solutions segment. Thermo Fisher anticipates that the transaction will be dilutive to adjusted earnings per share (EPS) by $0.06 in the first year of ownership. Excluding financing costs, the deal is expected to be accretive by $0.28 in that period. The company projects approximately $125 million in adjusted operating income from revenue and cost synergies by the fifth year following the close.

This acquisition allows Thermo Fisher to enter the filtration category in bioprocessing, an area where competitors such as Danaher and Repligen are well established. The integration of Solventum's filtration technologies is expected to complement Thermo Fisher's existing bioproduction business, which provides tools and services to accelerate the drug development process for biopharmaceutical companies.

Solventum expects to receive approximately $3.4 billion in net proceeds from the sale, which it intends to use primarily to pay down debt. The transaction is expected to be neutral to Solventum's 2025 EPS.

The bioprocessing market is experiencing rapid growth, driven by increasing demand for biologics and advanced therapies. By acquiring Solventum's Purification & Filtration business, Thermo Fisher aims to strengthen its position in this competitive landscape, offering a more comprehensive suite of solutions to its biopharmaceutical clients.

This acquisition marks a significant step for Thermo Fisher in enhancing its bioprocessing capabilities and underscores the company's commitment to providing comprehensive solutions in the life sciences sector.