Solventum Stock Jumps After $4.1B Deal With Thermo Fisher

Key Takeaways

Shares of Solventum (

SOLV

) jumped Tuesday and recently led S&P 500 gainers after medical device maker Thermo Fisher Scientific (

TMO

) said it would acquire the company’s purification and filtration business for $4.1 billion.

Solventum
Chief Executive Officer
Bryan Hanson on Tuesday called the deal part of a transformation plan to turn around the company’s business. The healthcare company
went public
in April 2024 after a
spinoff from 3M
(

MMM

) and said it plans to use proceeds from the Thermo Fisher deal to
pay down debt
. The deal is expected to close by the end of 2025.

Acquisition Expands Thermo Fisher’s Biologic Capabilities

For Thermo Fisher, the transaction expands the company’s capacity to develop and manufacture biologic medications,  a class of drugs produced using a living system, such as a microorganism or cells from plants or animals. Last year, Solventum’s purification and filtration arm brought in about $1 billion in
revenue
, Thermo Fisher said in its announcement of the purchase.

Solventum could get questions about the deal this week, with the company’s fourth-quarter results expected after the market closes Thursday. In addition to purification and filtration, Solventum operates medical, surgical, oral health, and health information and technology segments.

Shares of Solventum gained 10% intraday Tuesday and are up more than 20% over the last year, while Thermo Fisher stock added less than 1%. It’s down nearly 5% in the last 12 months.

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