Thermo Fisher Scientific to Acquire Solventum’s Purification and Filtration Business
Thermo Fisher Scientific (NYSE: TMO) has announced a definitive agreement to acquire Solventum's Purification & Filtration business for approximately $4.1 billion in cash. The Solventum business, which generated approximately $1 billion of revenue in 2024, is a leading provider of purification and filtration technologies used in biologics production and other applications.
This acquisition is highly complementary to Thermo Fisher's bioproduction business, expanding its capabilities in biologics development and manufacturing. The transaction is expected to be completed by the end of 2025, subject to regulatory approvals. Once closed, Solventum's business will become part of Thermo Fisher's Life Sciences Solutions segment.
The acquisition is expected to generate mid- to high-single digit organic growth and will be dilutive to adjusted EPS by $0.06 in the first year, but accretive by $0.28 excluding financing costs. Thermo Fisher expects to realize approximately $125 million of adjusted operating income from synergies by year five.
Thermo Fisher Scientific (NYSE: TMO) ha annunciato un accordo definitivo per acquisire il business di Purificazione e Filtrazione di Solventum per circa 4,1 miliardi di dollari in contante. Il business di Solventum, che ha generato circa 1 miliardo di dollari di fatturato nel 2024, è un fornitore leader di tecnologie di purificazione e filtrazione utilizzate nella produzione di biologici e in altre applicazioni.
Questa acquisizione è altamente complementare al business di bioproduzione di Thermo Fisher, ampliando le sue capacità nello sviluppo e nella produzione di biologici. Si prevede che la transazione sarà completata entro la fine del 2025, soggetta ad approvazioni regolatorie. Una volta conclusa, il business di Solventum diventerà parte del segmento Soluzioni per le Scienze della Vita di Thermo Fisher.
Si prevede che l'acquisizione genererà una crescita organica a cifra singola medio-alta e sarà diluitiva per l'EPS rettificato di 0,06 dollari nel primo anno, ma accretiva di 0,28 dollari escludendo i costi di finanziamento. Thermo Fisher prevede di realizzare circa 125 milioni di dollari di reddito operativo rettificato da sinergie entro il quinto anno.
Thermo Fisher Scientific (NYSE: TMO) ha anunciado un acuerdo definitivo para adquirir el negocio de Purificación y Filtración de Solventum por aproximadamente 4.1 mil millones de dólares en efectivo. El negocio de Solventum, que generó aproximadamente 1 mil millones de dólares en ingresos en 2024, es un proveedor líder de tecnologías de purificación y filtración utilizadas en la producción de biológicos y otras aplicaciones.
Esta adquisición es altamente complementaria al negocio de bioproducción de Thermo Fisher, ampliando sus capacidades en el desarrollo y fabricación de biológicos. Se espera que la transacción se complete para finales de 2025, sujeta a aprobaciones regulatorias. Una vez cerrada, el negocio de Solventum se convertirá en parte del segmento de Soluciones de Ciencias de la Vida de Thermo Fisher.
Se espera que la adquisición genere un crecimiento orgánico de cifras simples medio a alto y será dilutiva para el EPS ajustado en 0.06 dólares en el primer año, pero acretiva en 0.28 dólares excluyendo los costos de financiamiento. Thermo Fisher espera realizar aproximadamente 125 millones de dólares de ingresos operativos ajustados por sinergias para el quinto año.
Thermo Fisher Scientific (NYSE: TMO)는 약 41억 달러에 Solventum의 정제 및 필터링 사업을 인수하기 위한 최종 계약을 발표했습니다. 2024년 약 10억 달러의 수익을 올린 Solventum 사업은 생물학적 제품 생산 및 기타 응용 분야에 사용되는 정제 및 필터링 기술의 선도적인 공급업체입니다.
이번 인수는 Thermo Fisher의 생물 생산 사업과 매우 보완적이며, 생물학적 제품 개발 및 제조 능력을 확장합니다. 이 거래는 2025년 말까지 완료될 것으로 예상되며, 규제 승인에 따라 달라집니다. 거래가 완료되면 Solventum의 사업은 Thermo Fisher의 생명 과학 솔루션 부문의 일부가 됩니다.
이번 인수는 중간에서 높은 단일 성장률을 창출할 것으로 예상되며, 첫 해에는 조정된 EPS를 0.06달러 희석시킬 것으로 보입니다. 그러나 금융 비용을 제외하면 0.28달러 증가할 것으로 예상됩니다. Thermo Fisher는 5년 차에 시너지 효과로부터 약 1억 2500만 달러의 조정된 운영 수익을 실현할 것으로 기대하고 있습니다.
Thermo Fisher Scientific (NYSE: TMO) a annoncé un accord définitif pour acquérir le secteur de purification et de filtration de Solventum pour environ 4,1 milliards de dollars en espèces. L'activité de Solventum, qui a généré environ 1 milliard de dollars de revenus en 2024, est un fournisseur leader de technologies de purification et de filtration utilisées dans la production de biologiques et d'autres applications.
Cette acquisition est hautement complémentaire à l'activité de bioproduction de Thermo Fisher, élargissant ses capacités dans le développement et la fabrication de biologiques. La transaction devrait être finalisée d'ici la fin 2025, sous réserve des approbations réglementaires. Une fois conclue, l'activité de Solventum fera partie du segment des Solutions en Sciences de la Vie de Thermo Fisher.
On s'attend à ce que l'acquisition génère une croissance organique à un chiffre moyen à élevé et qu'elle soit dilutive pour le BPA ajusté de 0,06 dollar la première année, mais accrétive de 0,28 dollar en excluant les coûts de financement. Thermo Fisher s'attend à réaliser environ 125 millions de dollars de résultat opérationnel ajusté grâce aux synergies d'ici la cinquième année.
Thermo Fisher Scientific (NYSE: TMO) hat eine endgültige Vereinbarung zur Übernahme des Reinigungs- und Filtrationsgeschäfts von Solventum für etwa 4,1 Milliarden US-Dollar in bar bekannt gegeben. Das Solventum-Geschäft, das im Jahr 2024 etwa 1 Milliarde US-Dollar Umsatz generierte, ist ein führender Anbieter von Reinigungs- und Filtrationstechnologien, die in der Biologika-Produktion und anderen Anwendungen eingesetzt werden.
Diese Übernahme ist sehr komplementär zum Bioproduktionsgeschäft von Thermo Fisher und erweitert dessen Fähigkeiten in der Entwicklung und Herstellung von Biologika. Es wird erwartet, dass die Transaktion bis Ende 2025 abgeschlossen sein wird, vorbehaltlich der regulatorischen Genehmigungen. Nach Abschluss wird das Geschäft von Solventum Teil des Lebenswissenschaften-Lösungssegments von Thermo Fisher.
Es wird erwartet, dass die Übernahme ein organisches Wachstum im mittleren bis hohen einstelligen Bereich generiert und im ersten Jahr die bereinigte EPS um 0,06 US-Dollar verwässert, aber um 0,28 US-Dollar erhöht, wenn die Finanzierungskosten ausgeschlossen werden. Thermo Fisher erwartet, bis zum fünften Jahr etwa 125 Millionen US-Dollar an bereinigtem Betriebsergebnis aus Synergien zu realisieren.
- Strategic expansion into high-growth bioprocessing market
- Acquisition adds complementary filtration portfolio to existing bioproduction business
- Expected mid- to high-single digit organic growth from acquired business
- $125M in synergies expected by year five
- Accretive by $0.28 in first year excluding financing costs
- Double-digit internal rate of return projected
- Strong margin expansion opportunity through PPI Business System
- Dilutive to adjusted EPS by $0.06 in first year
- One-time business stand up costs in year one
- Regulatory approvals could delay completion until end of 2025
Insights
Thermo Fisher Scientific's $4.1 billion acquisition of Solventum's Purification & Filtration business represents a strategic expansion in the high-growth bioprocessing market, particularly strengthening TMO's position in the biologics manufacturing value chain.
This transaction fills a critical gap in TMO's bioprocessing portfolio. While TMO has established leadership in upstream processes (cell culture media) and single-use technologies, it has lacked comprehensive filtration capabilities essential for downstream purification workflows. The acquisition creates a more integrated offering that addresses the entire biologics manufacturing process - a significant competitive advantage in an industry where customers increasingly prefer single-vendor solutions to reduce validation complexity and supply chain risks.
The 4.1x revenue multiple appears reasonable compared to recent bioprocessing acquisitions, which have commanded premiums of 5-7x revenue in recent years. The relatively attractive valuation likely reflects current market conditions where bioprocessing companies have experienced growth normalization following the pandemic boom period. However, the long-term growth fundamentals remain strong, driven by increasing biologics approvals, expanding biosimilar markets, and the emergence of new modalities like cell and gene therapies.
From a financial perspective, the transaction structure reveals TMO's disciplined approach to M&A. The expected $125 million in synergies by year five represents approximately 12.5% of the target's current revenue - a meaningful but achievable target based on TMO's integration track record. The first-year EPS dilution of $0.06 is primarily due to financing costs, as evidenced by the $0.28 accretion when excluding these costs. This suggests strong day-one operational synergies from eliminating redundant corporate overhead.
For context, Solventum was recently spun off from 3M in April 2024, and this divestiture likely represents portfolio rationalization as the new company focuses on its core healthcare businesses. For TMO, the acquisition continues its strategy of building comprehensive workflows across life sciences markets through targeted acquisitions that strengthen its competitive moats.
The extended closing timeline (end of 2025) suggests potential regulatory scrutiny, though antitrust concerns should be given the complementary nature of the businesses. Investors should monitor integration execution, as realizing the projected double-digit IRR will depend on successfully combining the businesses while maintaining innovation momentum in a rapidly evolving bioprocessing market.
Thermo Fisher's $4.1 billion acquisition of Solventum's Purification & Filtration business represents a strategic move to address one of the most critical bottlenecks in biologics manufacturing - downstream processing. This transaction fundamentally reshapes the competitive landscape in bioprocessing by creating a more vertically integrated offering that spans the entire production workflow.
From a technical perspective, this acquisition fills a significant gap in TMO's portfolio. While TMO has established leadership in upstream processes (cell culture media, bioreactors) and single-use technologies, it has lacked comprehensive capabilities in the important downstream purification steps where therapeutic proteins are separated from host cell proteins, DNA, and other impurities. Solventum's technologies - which include depth filtration, tangential flow filtration (TFF), virus filtration, and chromatography solutions - address precisely these challenges.
This move directly challenges market leaders Danaher/Cytiva and Merck KGaA/MilliporeSigma, who have historically dominated the downstream purification space. The competitive dynamics are particularly interesting as the industry shifts toward integrated continuous bioprocessing, where the boundaries between traditional upstream and downstream steps are blurring. TMO now possesses the technical capabilities to develop truly integrated continuous manufacturing platforms - a key advantage as biomanufacturers seek to reduce facility footprints and capital costs.
The timing is strategic as the industry faces increasing pressure to reduce cost-of-goods-sold (COGS) for biologics. Downstream purification typically accounts for 50-80% of manufacturing costs for monoclonal antibodies and other biologics. By controlling both upstream and downstream technologies, TMO can potentially deliver significant cost reductions through optimized, integrated workflows that minimize intermediate steps and maximize yields.
For bioprocessing customers, this acquisition presents both opportunities and challenges. The potential for more seamlessly integrated solutions must be weighed against reduced vendor diversity and potential lock-in effects. Many manufacturers have deliberately maintained multi-vendor strategies to mitigate supply chain risks - a lesson reinforced during pandemic-related shortages.
The extended closing timeline (end of 2025) provides competitors with a window to respond strategically, potentially triggering further consolidation in the bioprocessing supplier landscape. The transaction also raises questions about TMO's existing partnerships with other filtration providers and whether these relationships will be maintained or phased out as Solventum's technologies are integrated into TMO's workflow solutions.
Highly Complementary to Thermo Fisher’s Bioproduction Business and Strengthens Offering in the High Growth Bioprocessing Market
Solventum’s Purification & Filtration business is a leading provider of purification and filtration technologies used in the production of biologics as well as in medical technologies and industrial applications. The Solventum business operates globally with sites across the
Solventum’s Purification & Filtration business is highly complementary to Thermo Fisher’s bioproduction business. Today, Thermo Fisher has a leading portfolio of offerings in cell culture media and single-use technologies. Solventum’s innovative filtration portfolio broadens Thermo Fisher’s capabilities in the development and manufacturing of biologics, spanning upstream and downstream workflows.
“The addition of Solventum’s business is an outstanding strategic fit with our company and will create significant value for our customers and shareholders,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher. “Solventum’s portfolio of solutions will be valued by our customers, and further demonstrate our disciplined capital deployment strategy which has an excellent track record of creating shareholder value.”
Casper continued, “As the trusted partner to our customers, Solventum’s Purification & Filtration business will expand and add differentiated capabilities to our bioprocessing portfolio to better serve our customers in this rapidly growing market. We look forward to welcoming our new colleagues to Thermo Fisher.”
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 EPS1 by
1Adjusted earnings per share and adjusted operating income are non-GAAP measures that exclude certain items detailed later in this press release under the heading "Use of Non-GAAP Financial Measures."
Advisors
For Thermo Fisher, WilmerHale is serving as principal deal counsel and Wells Fargo as exclusive financial advisor.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over
Forward-Looking Statements
This communication contains forward-looking statements that involve a number of risks and uncertainties. Words such as would,” "believes," "anticipates," "plans," "expects," "seeks," "estimates," and similar expressions are intended to identify forward-looking statements, but other statements that are not historical facts may also be deemed to be forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: any natural disaster, public health crisis or other catastrophic event; the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions, including the proposed acquisition of Solventum’s Purification & Filtration business, may not materialize as expected; the proposed acquisition of Solventum’s Purification & Filtration business being timely completed, if completed at all; regulatory approvals required for the transaction not being timely obtained, if obtained at all, or being obtained subject to conditions; Solventum’s Purification & Filtration business experiencing disruptions as a result of the acquisition or due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities; difficulty retaining key employees; the outcome of any legal proceedings related to the proposed acquisition of Solventum’s Purification & Filtration business; and the parties being unable to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within the expected time-frames or at all. Additional important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in Thermo Fisher's most recent annual report on Form 10-K, which is on file with the
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), Thermo Fisher uses certain non-GAAP financial measures, including adjusted earnings per share, and adjusted operating income, which excludes certain acquisition-related costs, including charges for the sale of inventories revalued at the date of acquisition and significant transaction costs; restructuring and other costs/income; amortization of acquisition-related intangible assets; certain other gains and losses that are either isolated or cannot be expected to occur again with any regularity or predictability, tax provisions/benefits related to the previous items, benefits from tax credit carryforwards, the impact of significant tax audits or events, equity in earnings of unconsolidated entities and the results of discontinued operations, as applicable. Thermo Fisher excludes the above items because they are outside of the company's normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We use organic growth, which is reported revenue growth, excluding the impacts of acquisitions/divestitures and the effects of currency translation. Thermo Fisher reports this measure because its management believes that in order to understand the company’s short-term and long-term financial trends, investors may wish to consider the impact of acquisitions/divestitures and/or foreign currency translation on revenues. Thermo Fisher management uses this measure to forecast and evaluate the operational performance of the company as well as to compare revenues of current periods to prior periods. Thermo Fisher believes that the use of non-GAAP measures helps investors to gain a better understanding of the company's core operating results and future prospects, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. Thermo Fisher does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort items such as the timing and amount of future restructuring actions and acquisition-related charges as well as gains or losses from sales of real estate and businesses, the early retirement of debt and the outcome of legal proceedings. The timing and amount of these items are uncertain and could be material to Thermo Fisher’s results computed in accordance with GAAP.
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Media:
Sandy Pound
Thermo Fisher Scientific
Phone: 781-622-1223
E-mail: sandy.pound@thermofisher.com
Investor:
Rafael Tejada
Thermo Fisher Scientific
Phone: 781-622-1356
E-mail: rafael.tejada@thermofisher.com
Source: Thermo Fisher Scientific Inc.
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