Thermo Fisher acquires Solventum’s filtration business for US $4.1 Billion

USA – Thermo Fisher Scientific has agreed to acquire Solventum’s purification and filtration business for US $4.1 billion in cash.

The unit, which specializes in biologics, medical devices, and industrial applications, generated US $1 billion in revenue last year and employs 2,500 people worldwide. It will now become part of Thermo Fisher’s life sciences solutions segment.

Strengthening bioprocessing capabilities

Thermo Fisher CEO Marc Casper stated that Solventum’s filtration technology will enhance the company’s bioproduction offerings, which already include cell culture media and single-use technologies.

This acquisition is expected to broaden Thermo Fisher’s capabilities in biologics manufacturing, making it more competitive in the rapidly growing bioprocessing market.

Solventum’s filtration membranes are used in industries ranging from biopharmaceuticals and medical technology to microelectronics, food, and beverage production.

The addition of these technologies will allow Thermo Fisher to better serve customers and expand its market reach.

Financial and market impact

Thermo Fisher expects the acquisition to drive mid- to high-single-digit organic growth and strong margin expansion.

Analysts believe this deal will strengthen Thermo Fisher’s position in bioprocessing, an area where competitors like Danaher and Repligen currently have a stronger presence.

For Solventum, which spun off from 3M in April 2024, the sale will provide US $3.4 billion in net proceeds, helping the company reduce debt and focus on core healthcare operations.

CEO Bryan Hanson described the sale as part of Solventum’s broader transformation strategy, ensuring the company remains competitive in its primary markets.

Following the announcement, Solventum’s stock surged 10% to US $83.96, while Thermo Fisher’s shares remained steady at US $536.09.

Projected growth and closing timeline

Thermo Fisher expects the acquisition to have a small short-term impact on earnings—a 6-cent dilution per share in the first year—but predicts long-term gains, with an increase of 28 cents per share excluding financing costs.

By year five, the deal is projected to contribute US $125 million in adjusted operating income from revenue and cost synergies.

The acquisition is expected to close by the end of 2025, subject to regulatory approvals and customary closing conditions.