#USA #Milford #Waters Corporation #BD #Biosciences

Introduction

On July 15, 2025, Waters Corporation and BD (Becton, Dickinson and Company) made a monumental announcement regarding their merger of the Biosciences and Diagnostic Solutions divisions. This strategic union aims to create a leading entity in the biosciences and diagnostics sector, with a focus on high-volume and regulated testing. This merger not only increases the capabilities of both companies but also expands their presence in rapidly growing markets.

Strategic Benefits and Market Expansion

The merger positions the combined company to nearly double the total addressable market to about $40 billion, with an anticipated annual growth rate of 5-7%. With a projected pro forma revenue of approximately $6.5 billion for 2025, the new entity expects to deliver an adjusted EBITDA of around $2 billion. Additionally, it is projected that over 70% of their revenue will be recurring, predominantly from leading market brands, thereby assuring consistent growth.

Immediate Commercial Impacts

The merger is expected to generate significant short-term commercial impacts as Waters executes its established business model, enhancing operational efficiencies and extending its product pipelines into various budding segments in the healthcare industry. The combination of Waters' leading liquid chromatography and mass spectrometry solutions with BD's flow cytometry and diagnostic technologies is expected to unlock new avenues for revenue and market penetration.

Accelerating Growth

Flemming Ornskov, Chairman of Waters, emphasized the importance of this merger as a crucial step in transforming Waters into a powerhouse for growth and value creation. The merger is believed to accelerate expansion in attractive regulated markets, leveraging BD's established regulatory expertise and Waters' strong operational execution.

Revenue and Cost Synergies

Management expects approximately $345 million in annual EBITDA synergies by 2030, stemming from a combination of $200 million in cost synergies by the third year post-merger, alongside $290 million in revenue synergies by the fifth year. These synergies are expected to arise from operational efficiencies, optimizations in production and supply chain management, and enhanced commercial excellence through cross-selling opportunities in various healthcare verticals.

Future Financial Predictions

In terms of long-term financial outlook, Waters and BD are forecasting robust growth trajectories, with the combined entity expected to achieve mid to high single-digit revenue growth and mid-teen adjusted EPS growth over five years. The financial outlook indicates that by 2030, the merged company could generate approximately $9 billion in revenue with a benchmark adjusted EBITDA of $3.3 billion, in addition to a 32% adjusted operational margin.

Conclusion

The Waters and BD merger signals a paradigm shift in the biopharmaceutical and diagnostic landscape. With both companies boasting rich legacies tied to innovation and excellence in service, their union is poised to deliver added value to stakeholders while addressing some of the pressing global health challenges through innovative solutions. As we move toward the completion of this merger in early 2026, both companies' leadership, including Udit Batra as President and CEO of the new entity, is focused on harnessing synergies and accelerating growth to achieve significant milestones in life sciences and diagnostics.