Thermo Fisher Acquires Solventum Filtration Arm in $4.1B Deal

Feb 25 - Contract drug producer Thermo Fisher Scientific announced on Tuesday its intention to acquire Solventum's purification and filtration unit for approximately $4.1 billion, causing the latter's stock to rise by about 9%. The agreement is expected to enable Thermo to enter the filtration sector in bioprocessing, where competitors Danaher and Repligen have a stronger presence, noted Leerink Partners analyst Puneet Souda.

The company, which offers filters for the purification of food, beverages, and drugs during their development, generated roughly $1 billion in revenue in 2024, according to Thermo.

Evercore analyst Vijay Kumar mentioned that the agreement is anticipated to enhance Thermo's bioprocessing sector, which offers tools and services aimed at speeding up the drug development process for biopharma firms.

Last month, the firm projected yearly earnings exceeding Wall Street predictions, relying on enhanced demand for its goods and services utilized in creating therapies.

In the initial year of ownership, Thermo anticipates that the agreement will reduce its adjusted profit per share by 6 cents. Without including financing costs, the agreement is anticipated to add 28 cents during that timeframe.

In January, activist investor Nelson Peltz's Trian Fund Management informed Solventum shareholders in a letter that the company's separation from 3M had not realized its potential. Trian, which according to LSEG data held a 4.9% stake in Solventum as of December 31, stated that divestitures could speed up the company's debt reduction and enable it to direct resources towards dividends, share buybacks, and mergers and acquisitions.