Thermo Fisher Acquires Solventum's Purification & Filtration Business in Cash Transaction
Thermo Fisher Scientific has agreed to acquire Solventum's purification & filtration business for USD 4.1 bn in cash. The purification & filtration unit - which generated around USD 1 bn in revenue in 2024 - specializes in purification filters and membranes used in biopharma, medical technology, microelectronics, food and beverage production, and water filtration. The acquisition will enable Thermo Fisher to strengthen its bioproduction capabilities, particularly in biopharmaceutical manufacturing.
Solventum plans to use proceeds primarily for debt reduction, as it strategizes a streamlining of operations. The deal is expected to close by the end of 2025, pending regulatory approvals.
Solventum announced it has entered into a definitive agreement to sell its Purification & Filtration1 business to Thermo Fisher Scientific Inc.("Thermo Fisher") for $4.1 billion. Solventum expects the transaction to be neutral to 2025 EPS and expects an estimated $3.4 billion in net proceeds, which it intends to use primarily to pay down debt. The transaction is expected to be completed by the end of 2025, subject to regulatory approval and customary closing conditions.
"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," said Bryan Hanson, Solventum CEO. "This transaction will enhance our strategic focus and key metrics while reducing leverage and significantly strengthening our balance sheet. It also enables us to invest in the innovation, programs and talent we need to execute our mission and deliver shareholder value."
Mr. Hanson continued, "Solventum is committed to ensuring a smooth transition for employees, customers and other stakeholders, and we are confident that Thermo Fisher will provide the Purification & Filtration business – which offers filters and membranes for use in the manufacturing of biopharmaceutical and medical technologies, microelectronics and food, beverage products and drinking water – the strategic investment and resources needed for sustaining growth and delivering customer solutions."
Solventum will discuss the transaction on its upcoming fourth quarter and full-year 2024 earnings call scheduled for February 27, 2025. With this significant change in the Company's portfolio and the other major actions taken since becoming an independent publicly traded company on April 1, 2024, Solventum has scheduled an Investor Day on March 20, 2025, to provide investors with an update on the progress made, its go-forward positioning and long-range plan. The Investor Day will be held in New York City, and the Company will share additional logistical details in due course.
Morgan Stanley & Co. LLC, Perella Weinberg Partners and J.P. Morgan Securities LLC served as financial advisors to Solventum, and Cleary Gottlieb Steen & Hamilton served as legal advisor to Solventum.
Other than for its operations in Belgium, France and Ireland, for which Thermo Fisher granted a binding offer to Solventum.
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