Key Takeaways
- Waters said it reached a deal to buy the Biosciences & Diagnostic Solutions business of Becton Dickinson for around $17.5 billion.
- The analytics instrument manufacturer said the acquisition would boost its market reach.
- The deal will leave Waters shareholders holding a 60.8% stake in the combined firm, with Becton Dickinson investors holding the other 39.2%.
Waters (WAT) shares tumbled over 12% Monday morning after the analytics instruments maker said it plans to buy Becton Dickinson’s (BDX) Biosciences & Diagnostic Solutions business in a Reverse Morris Trust transaction valued at $17.5 billion. Becton Dickinson shares were about 2% lower.
Waters said the agreement will double its total addressable market for liquid chromatography, mass spectrometry, flow cytometry, and diagnostic solutions, as well as boost its recurring revenue, and provide other benefits.
Chair Dr. Flemming Ornskov said as the board considered the merger, “it became evident that combining with BD’s Biosciences & Diagnostic Solutions business is an excellent strategic fit with complementary strengths.” He added that Waters believes the deal will “accelerate our strategy in multiple high growth markets and deliver substantial near- and long-term value to our shareholders.”
Under the terms of what is expected to be a tax-free transaction, Becton Dickinson’s division will be spun off to its shareholders while simultaneously merged with a wholly-owned subsidiary of Waters. Waters investors will hold 60.8% of the combined firm, with Becton Dickinson shareholders the other 39.2%. It’s anticipated to be completed in the first quarter of next year.
Shares of Waters are down about 17% in 2025 so far, while Becton Dickinson shares have lost about a quarter of their value.
TradingView