Waters Corporation and Becton Dickinson (BD) have announced a definitive agreement to combine BD's Biosciences & Diagnostic Solutions business with Waters, creating an innovative life science and diagnostics leader with pioneering technologies.
US-based Waters is a global leader in analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences for over 65 years.
The deal creates a combined company with expected 2025 sales of approximately $6.5 billion and adjusted EBITDA of approximately $2.0 billion. It is described by the two firms as a strong strategic fit that increases presence in multiple high-growth areas. The agreement is structured as a tax-efficient Reverse Morris Trust transaction valued at approximately $17.5 billion.
The newly created company will bring together complementary technologies to serve high-volume testing in regulated end-markets including liquid chromatography, mass spectrometry, flow cytometry, and diagnostic solutions.
BD's regulatory expertise and established presence in clinical and diagnostic settings is expected to drive enhanced market access, improved service support, accelerated menu expansion, and automation for multiplex diagnostics using LC-MS technologies from Waters.
Flemming Ornskov MD MPH, Chairman, Waters, said: "This transaction marks a pivotal milestone in Waters' transformation journey as we embark on a new chapter of growth and value creation. As the Board of Directors evaluated this opportunity throughout the process, it became evident that combining with BD's Biosciences & Diagnostic Solutions business is an excellent strategic fit with complementary strengths. We are confident that this combination will accelerate our strategy in multiple high-growth markets and deliver substantial near- and long-term value to our shareholders."
Tom Polen, Chairman, CEO and President of BD added: "We are bringing together complementary portfolios and channels that create an industry-leading life science and diagnostics company. 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. Waters offers the right cultural fit for our Biosciences & Diagnostic Solutions associates to flourish and continue their legacy of developing new-to-world, innovative solutions that make a meaningful impact on global healthcare."
Upon closing of the transaction, Udit Batra PhD, Waters’ President and Chief Executive Officer, will lead the new entity, and Amol Chaubal will serve as SVP and Chief Financial Officer. Executives from both companies will serve in key leadership roles to be announced at a later date.