Photo | Courtesy of Waters Corp.
Udit Batra, president & CEO of Waters Corp.
6 hours ago
Waters to buy multinational firm’s bioscience division for $17.5B
Video screenshot | Courtesy of Waters Corp.
A Waters Corp. facility in India
Milford life sciences manufacturer Waters Corp. has agreed to acquire the biosciences and diagnostic solutions business of New Jersey-based Becton, Dickinson, and Co., in a transaction valued at approximately $17.5 billion.
The deal, announced in a Monday press release, seeks to accelerate Waters’ expansion into high-growth markets and deliver cost and revenue synergies. The transaction between Waters and BD will be structured as a Reverse Morris Trust, which allows a company to sell off a division or assets in a way which is tax-free for both the parent company and its shareholders.
The combined company is expected to generate a revenue of $6.5 billion for 2025, leading to approximately $9 billion in annual revenue by 2030.
“Waters' transformation, marked by strong commercial execution and revitalized innovation, positions us well for this exciting next chapter,” Udit Batra, president and CEO of Waters, said in the press release. “We see tremendous opportunity to immediately apply our expertise in instrument replacement, service plan attachment, and eCommerce expansion, and realize the full potential of the flow cytometry and specialty diagnostics portfolios.”
BD’s biosciences and diagnostic solutions unit produces products that detect infectious diseases and cancers. The firm had been looking to offload this unit to focus on other aspects of its business, according to Reuters.
The move is expected to double Waters’ addressable market to approximately $40 billion, with annual growth in the range of 5-7%. The transaction is expected to close around the first quarter of 2026, subject to regulatory and shareholder approval.
"We are bringing together complementary portfolios and channels that create an industry-leading life science and diagnostics company,” Tom Polen, chairman, CEO, and president of BD, said in the press release. “We see an incredible opportunity to leverage both companies' commitments to unparalleled innovation, technology, and commercial presence to serve attractive high-growth end-markets, while simultaneously unlocking multiple new growth vectors. We couldn't be more confident that the combined company, under Udit's leadership, represents the best path to create substantial value for shareholders.”
Waters stock fell about 12% on Monday following the announcement, with a share price of approximately $311. BD’s stock was down around 1%, with a share price of approximately $173.50. Both companies trade on the New York Stock Exchange.
Waters is already the third largest life science firm and fifth largest manufacturer in Central Massachusetts, according to data compiled by the WBJ Research Department, with 1,450 local employees and $3 billion in 2024 revenue.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
WBJ Web Partners
Most Recent
Most Recent
0 Comments