Waters Corporation acquires BD’s Biosciences and Diagnostic Solutions business to enhance exposure to biologics, diagnostics, and regulated laboratory workflows. The deal adds a substantial base of recurring revenue and aims to drive above-market growth and margin expansion over the coming years. BD’s biosciences and diagnostic solutions unit is a $3.3bn business with durable revenue and geographical diversification.

The acquisition accelerates Waters’ shift towards faster-growing markets and strengthens its diagnostics strategy. Cost synergies of up to $200m are expected within three years, with potential to exceed $300m. Revenue synergies will come from commercial execution, expansion into higher-growth adjacencies, and cross-selling opportunities with BD’s strong customer base. The transaction aims to shift Waters towards a portfolio with more double-digit growth areas and targets 7% revenue CAGR over the next five years.

Overall, Waters Corporation’s acquisition of BD’s Biosciences and Diagnostic Solutions business marks a strategic move to expand into key growth areas in the healthcare industry. The deal is expected to drive significant revenue and cost synergies, positioning Waters for strong growth and margin expansion in the coming years.

Read more at Yahoo Finance: Waters Corporation expands into biosciences and diagnostics