Thermo Fisher Scientific has inked a definitive agreement with Solventum to acquire Solventum’s Purification & Filtration business for approximately USD 4.1 billion in cash.

Solventum’s Purification & Filtration business is a 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 Americas, Europe, the Middle East, Africa, and the Asia-Pacific region, and has approximately 2,500 colleagues. In 2024, Solventum’s Purification & Filtration business generated approximately USD 1 billion of revenue.

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,” added Casper.

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 USD 0.06. Excluding financing costs, the transaction is expected to be accretive by USD 0.28 in that period.

This reflects the very strong day one cost synergies when Solventum’s allocated segment costs are replaced by lower run rate costs within Thermo Fisher, partially offset in year one by one-time business stand up costs. Thermo Fisher expects to realize approximately USD 125 million of adjusted operating income from revenue and cost synergies by year five following the close.

The expected long-term business growth, margin expansion opportunity and synergy realization make the financial returns on the transaction very compelling with a double-digit internal rate of return.