Waters and BD Join Forces to Double Market Reach
Deal News | Jul 14, 2025 | PR Newswire Cision Waters Corporation; BD (Becton, Dickinson and Company)
Waters Corporation and BD's Biosciences & Diagnostic Solutions business have announced a definitive agreement to merge through a Reverse Morris Trust transaction. This merger is set to form an innovative leader in life sciences and diagnostics with cutting-edge technologies and a promising financial outlook. The transaction, valued at approximately $17.5 billion, will double Waters’ total addressable market to around $40 billion, with anticipated sales of $6.5 billion and adjusted EBITDA of about $2.0 billion by 2025. After completion, the combined company is expected to hold a major presence in high-growth markets and generate substantial shareholder value through complementary technology offerings and strategic expansion into new markets. Significantly, the combination is slated to generate over $345 million in annualized EBITDA synergies by 2030, delivering mid-teens EPS growth and strategic advantages by uniting existing assets with new opportunities from BD's strong regulatory and clinical domain expertise.
Sectors
- Life Sciences
- Diagnostics
- Healthcare
Geography
- United States – Both Waters Corporation and BD have their headquarters in the United States and the combined company will maintain significant operations here.
Industry
- Life Sciences – The merger involves companies that are prominent in life sciences, including applications in bioseparations and bioanalytical characterization.
- Diagnostics – BD's Diagnostic Solutions plays a significant role in the merger, enhancing offerings in clinical and diagnostic markets.
- Healthcare – Both companies aim to serve healthcare-related sectors, providing innovative diagnostics and medical technology solutions.
Financials
- $17.5 billion – Transaction value of the Reverse Morris Trust merger.
- $40 billion – The total addressable market that the combined entity will command.
- $6.5 billion – Pro forma expected sales of the combined company in 2025.
- $2.0 billion – Pro forma adjusted EBITDA expected for the combined company in 2025.
- $345 million – Expected annualized EBITDA synergies by 2030.
- $4 billion – Cash distribution BD will receive prior to completion of the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Waters Corporation | Acquirer | Company | Waters Corporation is a global leader in analytical instruments and software, serving various scientific sectors with a strong emphasis on pioneering technologies. |
| BD (Becton, Dickinson and Company) | Acquired Business | Company | BD's Biosciences & Diagnostic Solutions includes immunology and cancer research solutions with a focus on life sciences and diagnostics. |
| Barclays | Financial Advisor | Company | Barclays is providing financial advisory services to Waters for the transaction. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Legal counsel to Waters Corporation in the merger transaction. |
| Citi | Financial Advisor | Company | Citi is acting as the lead financial advisor to BD for this transaction. |
| Evercore | Financial Advisor | Company | Evercore also serves as a financial advisor to BD. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | Lead legal counsel to BD in the transaction. |
| Udit Batra | CEO | Person | President and Chief Executive Officer of Waters Corporation, who will lead the combined entity. |
| Tom Polen | CEO | Person | Chairman, CEO and President of BD, involved in executing the merger strategy. |