European Investor
14 Jul 2025, 19:03
Waters and BD to Merge Diagnostic Solutions in $17.5 Billion Reverse Morris Trust Deal
Waters Corporation (NYSE: WAT) and BD (Becton, Dickinson and Company; NYSE: BDX) announced a definitive agreement to merge BD’s Biosciences & Diagnostic Solutions business with Waters through a Reverse Morris Trust structure valued at approximately $17.5 billion. The combined entity will be a leader in regulated, high-volume life science and diagnostics testing.
Key highlights:
• The merged company will have pro forma 2025 revenue of approximately $6.5 billion and adjusted EBITDA of $2.0 billion.
• Waters' total addressable market will double to roughly $40 billion, growing at 5–7% annually.
• Over 70% of the company’s revenue will be recurring, derived from iconic brands.
• Annualized EBITDA synergies of $345 million are expected by 2030.
• The deal is expected to be accretive to adjusted EPS in the first year.
Waters will retain its name and headquarters in Massachusetts, with BD shareholders owning 39.2% of the new company and receiving a $4 billion cash distribution. Udit Batra will lead the combined entity, which is projected to close by Q1 2026, pending regulatory and shareholder approvals.
Waters Corporation (NYSE: WAT) and BD (Becton, Dickinson and Company; NYSE: BDX) announced a definitive agreement to merge BD’s Biosciences & Diagnostic Solutions business with Waters through a Reverse Morris Trust structure valued at approximately $17.5 billion. The combined entity will be a leader in regulated, high-volume life science and diagnostics testing.
Key highlights:
• The merged company will have pro forma 2025 revenue of approximately $6.5 billion and adjusted EBITDA of $2.0 billion.
• Waters' total addressable market will double to roughly $40 billion, growing at 5–7% annually.
• Over 70% of the company’s revenue will be recurring, derived from iconic brands.
• Annualized EBITDA synergies of $345 million are expected by 2030.
• The deal is expected to be accretive to adjusted EPS in the first year.
Waters will retain its name and headquarters in Massachusetts, with BD shareholders owning 39.2% of the new company and receiving a $4 billion cash distribution. Udit Batra will lead the combined entity, which is projected to close by Q1 2026, pending regulatory and shareholder approvals.
