Becton Dickinson (BD) is sharpening its focus on medical technology by divesting its biosciences and diagnostic solutions unit to Waters Corporation in a deal valued at approximately $17.5 billion.
“This marks the coming together of two pioneering companies that are exceptionally well-aligned,” said Waters CEO Udit Batra during a call announcing the transaction.
BD had previously disclosed plans in February to spin off the unit, aiming to reinforce its position as a specialized medical technology company. Leaders from both organizations emphasized the strategic and financial benefits of the transaction.
For Waters, the acquisition significantly boosts its market presence—doubling its total addressable market to nearly $40 billion. Batra highlighted that more than 70% of the combined company’s revenue is expected to be recurring annually. He projected an initial adjusted operating margin of 27%, with the potential to expand by 500 basis points by 2030.
“This transaction puts us firmly on track to reach industry-leading margin levels within the next few years,” Batra added.
BD Chairman and CEO Tom Polen described the deal as a transformative opportunity, allowing the company to emerge as a focused, large-scale medtech player. “We believe this move unlocks new potential for the biosciences and diagnostics segment while creating long-term value for our shareholders,” he said.
As part of the agreement, Waters will issue roughly 39% of its shares to BD shareholders and take on $4 billion in debt. BD will also receive a $4 billion cash distribution before the deal is finalized. Following the transaction, Waters shareholders will own around 61% of the merged entity.
Leadership of the combined company will remain with Waters, with Batra continuing as CEO and current CFO Amol Chaubal stepping into the role of Senior Vice President and CFO. BD will appoint up to two representatives to Waters’ board post-closing.
The deal is anticipated to close by the end of Q1 2026.