BD (Becton, Dickinson and Company) has agreed to transfer its Biosciences and Diagnostic Solutions divisions to Waters Corporation in a transaction valued at $17.5 billion. This deal, among the largest of the year, will combine the two units—together generating approximately $3.4 billion in 2024 revenue—with Waters through a Reverse Morris Trust structure.
Announced in February, BD’s divestiture of these businesses is part of a broader initiative to narrow its focus on core areas such as essential medical devices and drug delivery technologies. The deal structure will allow BD to avoid the taxation typically associated with direct asset sales. Under this arrangement, BD will first spin off the units into a standalone company, which will then merge with a subsidiary owned by Waters.
Following completion, ownership of the newly formed company will be divided between shareholders of the two firms, with Waters investors holding roughly 60% and BD shareholders receiving the remaining 40%. Additionally, BD is set to receive approximately $4 billion in cash, half of which is expected to be used for share repurchases, while the remainder will be allocated to debt reduction. Waters will take on about $4 billion in incremental debt as part of the agreement. The transaction is anticipated to close in the first quarter of 2026.
Looking ahead to 2025, the combined company is projected to generate $6.5 billion in revenue, supported by a workforce of 16,000 employees. Operations will focus on high-throughput diagnostics and regulated applications, including biopharma quality control, infectious disease detection, molecular diagnostics, and food and environmental testing.
Waters projects that the transaction will expand its total addressable market to $40 billion, with expected annual growth between 5% and 7%. This outlook is based on recurring revenues tied to consumables and services, making up about 70% of the revenue base, and supported by the addition of more than 25,000 BD flow cytometers and over 40,000 diagnostic devices worldwide.
Udit Batra, President and CEO of Waters, described the transaction by stating, “This is absolutely a perfect fit.” He pointed to an installed base of 70,000 BD instruments globally, including 20,000 that are slated for replacement within the next two years. Batra also discussed plans for service and e-commerce growth, as well as expansion into areas such as bioanalytical characterization, bioseparations, and multiplex diagnostics.
Tom Polen, BD’s President and CEO, noted that the deal brings together complementary product lines and commercial strategies, with potential to serve high-growth segments of the life sciences and diagnostics markets. He added that Waters provides an organizational environment that aligns with the biosciences and diagnostics teams’ ongoing contributions to healthcare innovation.
Market response to the announcement was subdued. Waters’ stock declined over 13% to approximately $304.50, while BD’s shares fell around 1% to $174.40. Analysts have pointed to investor concerns around increased exposure to microbiology sectors, which have faced funding pressures in recent years.
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
- Editorial Team
