Thermo Fisher Scientific has finalized its acquisition of Solventum’s Purification & Filtration business. Valued at approximately $4 billion, the transaction adds a portfolio of filtration and membrane technologies to Thermo Fisher’s Life Sciences Solutions segment.
Scope of the business
The acquisition includes filtration solutions for bioprocessing, healthcare, and industrial applications, as well as membranes for ultra-pure water systems. With an expected annual revenue contribution of around $750 million by 2025, the business is positioned to improve the efficiency and quality of both upstream and downstream bioprocessing workflows.
Industrial applications
In addition to bioproduction, the filtration technologies will expand Thermo Fisher’s reach into industries with stringent purity requirements, including battery manufacturing, semiconductors, and medical devices.
“We are delighted to welcome the Filtration and Separation colleagues to Thermo Fisher. The addition of innovative filtration technologies is highly complementary and expands our bioprocessing portfolio to better serve the end-to-end needs of our pharma and biotech customers in this rapidly growing market. It also provides opportunities to broaden our reach in adjacent markets with attractive growth”, said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher.
Financial expectations
The company anticipates mid- to high-single-digit organic growth for the acquired business. Revenue and cost synergies are expected to generate approximately $125 million of adjusted operating income by year five. Although the acquisition will be dilutive to adjusted EPS in 2025, Thermo Fisher projects margin expansion and a double-digit internal rate of return over the long term.
Integration
The Filtration and Separation business now operates under the Thermo Fisher brand. The PPI Business System supports its integration and is designed to accelerate synergy realization and optimization.
