The manufacturer of Waters Corp laboratory equipment will merge with the BioSciences & Diagnostic Diagnosis Solutions of the Géant Becton, Dickinson and Company as part of a Reverse Morris Trust operation worth $ 17.5 billion, the two companies announced on Monday.
An operation Reverse Morris Trust allows a company to avoid a heavy tax invoice by splitting a unit which it wishes to yield, while merging it simultaneously with another company.
Following this announcement, the action of Waters Corp dropped by 5.8 % before the opening of the markets, while the title of Becton fell 2.3 %.
According to the two groups, this merger will allow Waters to double the size of its addressable market, which will reach 40 billion dollars, strengthen its recurring income and speed up its expansion in areas such as bio-separations, organic characterization and multiplex diagnoses.
The combined turnover of the two entities should be around $ 6.5 billion in 2025.
The operation, whose finalization is expected in the first quarter of 2026, should increase the profit adjusted by action from the first year, with targeted annual cost savings by $ 345 million by 2030.
At the end of the transaction, Becton shareholders should hold about 39.2 % of the new entity, while the current Waters shareholders will have 60.8 %.
The BioSciences and Diagnostic Solutions of BECTON, in particular, makes diagnostic tools used for the identification of infectious diseases and cancer.
