Thermo Fisher Expands Bioproduction And Industrial Filtration Portfolio With Solventum Acquisition

Thermo Fisher Scientific Inc. announced the completion of its $4.0 billion cash acquisition of Solventum’s Purification & Filtration business, which will now operate as Thermo Fisher’s Filtration and Separation business within its Life Sciences Solutions segment. 

“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. 

The acquired business serves Bioprocessing Filtration, Healthcare and Industrial Filtration, and Membranes, strengthening Thermo Fisher’s bioproduction capabilities with advanced technologies that improve upstream and downstream workflows. Its industrial filtration and membrane solutions will also expand Thermo Fisher’s presence in industries requiring ultra-pure water, such as battery, semiconductor, and medical device manufacturing. The business is expected to generate ~$750 million in 2025 revenue.

Thermo Fisher anticipates mid- to high-single-digit organic growth, strong margin expansion, and meaningful synergies from the integration, with $125 million in adjusted operating income synergies expected by year five. The transaction will be dilutive to adjusted EPS by $0.06 in year one, due to one-time costs, but is projected to deliver a double-digit internal rate of return in the long term.