Waters Corporation (NYSE:WAT) is one of the stocks Jim Cramer recently discussed. Cramer discussed the company’s upcoming merger with Becton, Dickinson’s biosciences and diagnostics business. He remarked: “Finally, please don’t forget about one that was always my personal favorite, never owned it for the trust, Waters Corporation, one of the quieter companies in this space that specializes in liquid chromatography and mass spectrometry. Now, that’s stuff that you need to be able to do all this life scienc ...

Core Viewpoint - Waters Corporation and BD have announced a definitive agreement to combine BD's Biosciences & Diagnostic Solutions business with Waters, creating a leading entity in life sciences and diagnostics valued at approximately $17.5 billion [1][2]. Strategic and Financial Benefits - The transaction is expected to create substantial shareholder value through a strong strategic fit, increasing Waters' total addressable market to approximately $40 billion with an annual growth rate of 5-7% [2][3]. - Pro forma expected sales for the combined company in 2025 are approximately $6.5 billion, with adjusted EBITDA around $2.0 billion [2][9]. - The combined entity anticipates over 70% of its revenue to be recurring, with significant contributions from market-leading brands [2][3]. - Expected annualized EBITDA synergies of approximately $345 million by 2030, including $200 million in cost synergies by year three and $290 million in revenue synergies by year five [2][4]. - The transaction is projected to be accretive to adjusted EPS in the first year, with mid-to-high single-digit revenue growth and mid-teens annualized adjusted EPS growth expected over five years [2][9]. Technological and Market Expansion - The merger will bring together complementary technologies, enhancing capabilities in high-volume testing across regulated markets, including liquid chromatography and mass spectrometry [3][4]. - The combined company aims to accelerate expansion into high-growth adjacent markets, leveraging Waters' chemistry expertise and BD's biologics knowledge [3][4]. - BD's regulatory expertise is expected to enhance market access and service support, particularly in multiplex diagnostics using Waters' technologies [3][4]. Management and Governance - Udit Batra, Ph.D., will lead the new entity, with key leadership roles filled by executives from both companies [11][12]. - The combined company will operate under the Waters name and maintain its listing on the New York Stock Exchange [12]. Financial Structure and Transaction Details - The transaction is structured as a Reverse Morris Trust, with BD shareholders expected to own approximately 39.2% of the combined company and Waters shareholders approximately 60.8% [10]. - BD will receive a cash distribution of approximately $4 billion prior to the completion of the combination [10]. - The transaction is expected to close around the end of the first quarter of 2026, pending regulatory approvals and other customary conditions [10].