Solventum amends deal with Thermo Fisher, excludes water business, expects increased EPS gain.

Solventum Corporation (NYSE:SOLV) amended its transaction agreement with Thermo Fisher Scientific Inc. (NYSE:TMO), excluding the drinking water filtration business from the assets being acquired. The cash consideration for the acquisition was adjusted from ~$4.1 billion to $4 billion, with net proceeds intended for debt reduction. The deal is expected to close by the end of the year.

Under the revised agreement, Thermo Fisher could receive up to $75 million from Solventum. The exclusion of the water business is projected to increase Solventum’s annual EPS gain by $0.15 to $0.2. Terms of the amended agreement remain similar to the original, focusing on modifications related to the water business’s exclusion.

Solventum Corporation is a healthcare company, while Thermo Fisher Scientific provides life sciences solutions internationally. The amended agreement reflects changes to non-compete clauses, reverse services, manufacturing, and supply agreements to support the retained water business. Consider investing in SOLV for potential upside, although other AI stocks may offer greater potential and less risk.

The amendment is expected to accelerate the transaction’s closure, with the deal still set to be finalized by the end of the year. The exclusion of the water business from the assets being acquired by Thermo Fisher has led to adjustments in the cash consideration and potential earnings per share gain for Solventum.

Read more at Yahoo Finance: Solventum Amends Thermo Fisher Deal, Retains Water Filtration Business