Solventum ups guidance after asset sale

 

• Accelerates Solventum's business transformation to deliver long-term shareholder value
• Net proceeds will be used primarily to pay down debt

 Solventum (NYSE: SOLV) today announced it has completed the sale of its Purification & Filtration business ("P&F") to Thermo Fisher Scientific Inc. (NYSE: TMO) ("Thermo Fisher") for $4.0 billion in cash before customary adjustments. 

"Completing the transaction is an important milestone in Solventum's three-phased transformation plan and positions us well to advance our capital allocation strategy as we reduce leverage and strengthen our balance sheet with enhanced flexibility to invest in organic and inorganic growth opportunities," said Bryan Hanson, chief executive officer of Solventum. "Looking ahead, we remain focused on strategic execution, ensuring we deliver even greater value to our customers, team members and investors."

As previously announced, Solventum will use the net proceeds from the sale of $3.4 billion primarily to pay down outstanding debt.

Updated Full-Year 2025 Guidance
Solventum is updating its full year 2025 guidance to reflect the partial year accretion of the accelerated P&F divestiture.

• Organic sales growth in the range +2.0% to +3.0% (+2.5% to +3.5% excluding ~50 bps of SKU exit impact); no change
• Increased adjusted EPS range to $5.88 to $6.03 from prior range of $5.80 to $5.95
• Free cash flow in the range of $450 million to $550 million; no change

Updated additional financial considerations

• Expect net interest expense of $400 million, from prior estimate of $450 million
• Expect operating margin to be toward the high-end 20% to 21% range for full year 2025

Solventum's updated full year 2025 guidance reflects the expected reduction of net interest expense, which will more than offset the financial impact of the divestiture of the P&F business and is subject to the timely completion of the recently announced tender offers.

Following the transaction close, Solventum will provide transitional services and perform certain manufacturing and distribution activities on behalf of Thermo Fisher.

https://www.prnewswire.com/news-releases/solventum-completes-sale-of-its-purification--filtration-business-to-thermo-fisher-scientific-inc-302543458.html