Thermo Fisher acquires Solventum’s PF business in $4.1bn deal

May 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

May 2025 Issue

In a deal that strengthens its offering in the high growth bioprocessing market, US life sciences and clinical research company Thermo Fisher Scientific Inc. is to acquire the purification and filtration (PF) business of healthcare firm Solventum for approximately $4.1bn in cash.

In the first year of ownership, Thermo Fisher expects the deal to be dilutive to its adjusted per share profit by 6 cents. Excluding financing costs, the transaction is expected to be accretive by 28 cents in that period.

Highly complementary to Thermo Fisher’s bioproduction business, Solventum’s business is a leading provider of the PF technologies used in the production of biologics as well as in medical technologies and industrial applications. Its innovative filtration portfolio broadens Thermo Fisher’s capabilities in the development and manufacturing of biologics, spanning upstream and downstream workflows.

“The sale of the PF business is part of phase three of our transformation plan and follows a thorough analysis of the value and strategic alignment of our businesses,” said Bryan Hanson, chief executive of Solventum. “This transaction will enhance our strategic focus and key metrics while reducing leverage and significantly strengthening our balance sheet. It also enables us to invest in the innovation, programs and talent we need to execute our mission and deliver shareholder value.”

Operating globally with sites across the Americas, Europe, the Middle East, Africa and the Asia-Pacific region, Solventum’s PF business has approximately 2500 employees. In 2024, Solventum’s PF business generated approximately $1bn in revenue.

“Solventum is committed to ensuring a smooth transition for employees, customers and other stakeholders,” continued Mr Hanson. “We are confident that Thermo Fisher will provide the PF business – which offers filters and membranes for use in the manufacturing of biopharmaceutical and medical technologies, microelectronics and food, beverage products and drinking water – the strategic investment and resources needed for sustaining growth and delivering customer solutions.”

The transaction is expected to be completed by the end of 2025, subject to regulatory approval and customary closing conditions. Once the transaction closes, Solventum’s PF business will become part of Thermo Fisher’s life sciences solutions segment.

“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 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.”

With annual revenue over $40bn, Thermo Fisher’s mission is to enable its customers to make the world healthier, cleaner and safer. Its global team delivers an unrivalled combination of innovative technologies, purchasing convenience and pharmaceutical services through industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.

Serving as principal deal counsel to Thermo Fisher is Wells Fargo with Morgan Stanley & Co. LLC serving as exclusive financial adviser. Serving as financial advisers to Solventum are Perella Weinberg Partners and JP Morgan Securities LLC, with Cleary Gottlieb Steen & Hamilton serving as legal adviser.

“As the trusted partner to our customers, Solventum’s PF business will expand and add differentiated capabilities to our bioprocessing portfolio to better serve our customers in this rapidly growing market,” concluded Mr Casper. “We look forward to welcoming our new colleagues to Thermo Fisher.”

Fraser Tennant