- Waters Corporation (WAT, Financial) and BD announce a $17.5 billion merger through a Reverse Morris Trust transaction.
- The combined company expects 2025 pro forma sales of $6.5 billion and adjusted EBITDA of $2.0 billion.
- Waters' total addressable market doubles to $40 billion, with expected $345 million in annualized EBITDA synergies by 2030.
Waters Corporation (WAT) and BD have confirmed a merger valued at $17.5 billion, structuring it as a tax-efficient Reverse Morris Trust transaction. This deal will combine BD's Biosciences & Diagnostic Solutions business with Waters, setting the stage for a leading life science and diagnostics firm with an emphasis on regulated, high-volume testing markets.
The merger is projected to significantly expand Waters' market reach, doubling its total addressable market to $40 billion. By 2025, the combined entity expects to achieve pro forma sales of $6.5 billion and adjusted EBITDA of $2.0 billion. Additionally, the merger is set to increase Waters' annual recurring revenue to over 70%.
Financial synergies are a major highlight, with $345 million in annualized EBITDA synergies targeted by 2030. These include $200 million in cost synergies within three years post-closing and $290 million in revenue synergies by the fifth year. The transaction is anticipated to be accretive to adjusted EPS in its first year.
Post-merger, Waters will continue under its name and ticker symbol WAT, with BD shareholders holding a 39.2% stake and Waters shareholders retaining 60.8%. Udit Batra, current CEO of Waters, will take the helm of the combined company, which is expected to finalize the merger by the first quarter of 2026, pending regulatory approvals.
