Leerink says Waters to bank on disciplined execution in longer run after deal

Leerink notes that this morning, Waters (WAT) and Becton Dickinson (BDX) announced a definitive agreement to merge Becton Dickinson’s Biosciences & Diagnostic Solutions business with Waters via a tax-efficient Reverse Morris Trust transaction. Waters is acquiring both the flow cytometry and the microbiology business of Becton Dickinson. The deal is valued at $17.5B, with Becton Dickinson shareholders owning 39.2% of the combined company, while existing Waters shareholders will retain 60.8%. Leerink also highlights that long-term outlook was presented, and CEO Udit Batra’s disciplined execution will be key to achieving the 5-year outlook. The firm believes Outperform-rated Waters will bank on execution in the longer run with recent discipline implemented under CEO WAT Udit Batra having driven Waters back on track.