Waters Shares Tumble as Landmark $17.5B Merger Drives 33.16% Trading Volume Drop to $260M Ranking 448th in Market Activity

On August 6, 2025, Waters Corporation (WAT) saw its shares fall 1.23% as trading volume dropped 33.16% to $260 million, ranking 448th in market activity. This follows the announcement of a $17.5 billion Reverse Morris Trust merger with BD’s Biosciences & Diagnostic Solutions division, creating a combined entity focused on life sciences and diagnostics. The transaction, expected to close in late 2025, aims to leverage BD’s regulated testing capabilities and Waters’ analytical innovation to target high-growth areas like microbiology and diagnostics.

Waters’ Q2 2025 earnings highlighted robust operational momentum, with 9% revenue growth driven by 11% recurring revenue and 9% non-GAAP EPS growth. Product launches such as the Xevo TQ Absolute XR mass spectrometer and BioResolve Protein A columns demonstrated strong market adoption. The merger is projected to unlock $345 million in EBITDA synergies by 2029, combining Waters’ commercial execution expertise with BD’s installed base. Key growth vectors include bioseparations, flow cytometry integration, and microbiology QA/QC expansion, with combined revenue CAGR targeting 7% and adjusted EPS CAGR in the mid-teens through 2030.

The merger’s strategic rationale centers on BD’s 55% recurring revenue model and Waters’ ability to enhance commercial performance through e-commerce adoption (40% currently) and service plan attachments (52%). Cost synergies from supply chain rationalization and procurement efficiencies are expected to offset short-term headwinds like U.S. academic funding cuts and pharma R&D delays. BD’s microbiology business, a $1.8 billion segment with 700 basis points of gross margin expansion potential, presents untapped opportunities in sterile manufacturing and mass spectrometry integration. Integration leadership under Chris Ross, a veteran of the EMD Millipore-Sigma-Aldrich merger, signals disciplined execution.

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