Waters Corporation and BD Unite to Form a Leader in Life Sciences and High-Volume Diagnostic Testing

Waters Corporation and BD Join Forces



On July 15, 2025, Waters Corporation, a leader in analytical instruments and technologies, announced a definitive agreement to merge with BD (Becton, Dickinson and Company), a major player in medical technology. This union aims to create a significant entity in the field of life sciences and diagnostic solutions, focusing on regulated and high-volume testing.

Strategic Synergy and Market Impact



The merger is poised to create substantial shareholder value by synergizing complementary technologies from both companies. By combining their resources, the new enterprise will double Waters' total addressable market to approximately $40 billion, encompassing a range of high-growth sectors that are increasingly relevant in today's healthcare environment.

Projected growth rates for the merged company are expected to be robust, with an annual sales increase of 5-7%. In financial terms, the pro forma revenue for the newly formed entity is anticipated to be around $6.5 billion for the fiscal year 2025, with an adjusted EBITDA of about $2 billion.

Additionally, the merger is expected to enhance annual recurring revenues to more than 70%, with over 80% derived from established market brands. It is projected that by 2030, approximately $345 million in annualized EBITDA synergies will be realized, propelling both companies toward even greater operational efficiency and profitability.

Unpacking the Financial Prospects



The financial outlook for the merged entity appears promising. The average annual revenue growth is projected to be in the mid-to-high single digits, supplemented by an adjusted operating margin expansion of around 500 basis points. Furthermore, an increase in adjusted earnings per share of about 15% is expected over the next five years. The effects of this merger on adjusted earnings per share are expected to be positive even in the first year post-completion.

Flemming Ornskov, M.D., M.P.H. and current President of Waters stated, "This transaction represents a fundamental shift in our growth trajectory, allowing us to leverage complementary strengths to serve multiple high-growth markets effectively. We anticipate significant value creation for our shareholders in both the short and long term."

Udit Batra, Ph.D., CEO of Waters, emphasized the swift execution of commercial strategies as a vital element of their integration plan, which includes replacing instruments, expanding service plans, and enhancing e-commerce capabilities.

Merging Expertise and Technology



The merger will combine Waters' unmatched expertise in liquid chromatography, mass spectrometry, and flow cytometry with BD's prowess in regulatory and clinical diagnostics. This will enhance the capabilities of the new company to meet the demands of regulated markets and address the growing need for high-quality diagnostic solutions.

Waters' established technological platforms, like Empower™, are expected to integrate seamlessly with BD's innovative offerings, enhancing quality assurance and control processes in large-molecule testing environments. Furthermore, the alignment of BD's regulatory knowledge with Waters' technical capabilities will improve market access and expand automation efforts in multiplex diagnostics.

As the two companies foresee substantial cost synergies stemming from optimized manufacturing and supply chain consolidation, they also anticipate revenue synergies resulting from enhanced commercial excellence. These initiatives are expected to create a new standard in the diagnostics space that caters to a variety of essential healthcare outcomes.

Conclusion: A New Frontier in Health Science



This merger is not merely a business agreement but a transformative step toward shaping the future of life sciences and diagnostics. The unified entity is prepared to tackle the challenges of today’s healthcare environment by providing innovative solutions that improve quality and accessibility in patient care. With the finalized deal expected in early 2026, stakeholders are keen to witness the impact of this merger on the broader health ecosystem and its potential to drive significant advancements in testing technologies and practices.

Moving forward, both corporations remain committed to prioritizing innovative solutions, ensuring that they meet the needs of healthcare practitioners and patients alike while delivering substantial value to their shareholders.

Topics Health)

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