Waters Corporation and BD Biosciences to Merge for a New Era in Life Sciences and Diagnostics

Strategic Merger Between Waters and BD's Biosciences Business

In a landmark decision announced on July 15, 2025, Waters Corporation (NYSE: WAT) and BD (Becton, Dickinson and Company) (NYSE: BDX) revealed their definitive agreement to merge BD's Biosciences & Diagnostic Solutions with Waters. This strategic alliance is expected to create an industry leader in life sciences and diagnostics, specifically focusing on regulated, high-volume testing. This merger does not only signify a combining of technologies, but it also paves the way for expansive growth and enhanced value generation for shareholders.

Enhanced Market Position

The merger aims to expand Waters’ market access significantly, doubling its total addressable market to approximately $40 billion, which is projected to be growing at an annual rate of 5-7%. The newly formed entity anticipates a pro forma revenue of about $6.5 billion and an adjusted EBITDA around $2 billion for the year 2025. With more than 70% of the anticipated revenue expected to be recurring, Waters is well-positioned to harness the benefits of stable revenue streams, primarily from its acclaimed brand portfolio.

Financial Synergies and Growth Outlook

One of the most exciting aspects of this merger is the expected synergies. By 2030, the companies forecast around $345 million in annualized EBITDA synergies. These include $200 million in cost synergies by the third year and $290 million in revenue synergies by the fifth year. The combined entity will focus on enhancing its operational efficiency across manufacturing, supply chain, and administrative functions while maintaining its commitment to innovation and growth.

Complementary Technologies and Market Reach

The fusion of technologies between Waters and BD promises to serve high-volume testing markets effectively. Integrating Waters' expertise in liquid chromatography and mass spectrometry with BD's strengths in flow cytometry and diagnostic solutions will unveil innovative methods for biomolecule separation, thereby driving growth. The collaboration is set to accelerate Waters' penetration into several high-growth adjacent markets.

In bioanalytical characterization, Waters’ proven platform, Empower™, is anticipated to effectively integrate BD’s flow cytometry technologies and enhance quality control measures for large molecules. This merger is expected to expand BD’s established clinical and diagnostic capabilities, facilitating better market access, technical support, and an enriched diagnostics portfolio through Waters’ LC-MS technologies.

Leadership and Strategic Direction

Post-merger, the leadership structure has been defined where Dr. Udit Batra, the President and CEO, will spearhead the new entity, aiming to leverage the strengths of both organizations. The merger is anticipated to ignite a new chapter for Waters, setting it on a course towards robust growth, expansion, and significant value creation for stakeholders. Both Flemming Ornskov and Tom Polen have expressed strong optimism regarding the merger, emphasizing their commitment to innovation and operational excellence.

Conclusion

Waters and BD’s merger is not just a corporate amalgamation but a strategic move that positions both companies to significantly influence the life sciences and diagnostics landscape. The expectation of increased market reach, innovative technology integration, and solid revenue streams signifies a promising future. As we approach the expected closing date in early 2026, stakeholders are keenly awaiting the merger to reshape industry standards and improve healthcare outcomes worldwide. For more information on the merger, the upcoming conference call will take place on July 14, 2025, at 8:00 AM ET.