Solventum Corporation has announced an update to its transaction with Thermo Fisher Scientific Inc. Initially, Thermo Fisher agreed to acquire Solventum's purification and filtration business. However, the two companies have now entered into an Amended and Restated Transaction Agreement to exclude Solventum's drinking water filtration business from this acquisition. This modification reduces the cash consideration for the transaction from approximately $4.10 billion to $4.00 billion. Solventum will also retain the Water Business, which is expected to increase the company's annual EPS accretion but might reduce projected improvements to gross and operating margins. The transaction is anticipated to close by the end of 2025, with future value opportunities arising from the retained Water Business.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.