- Accelerates ongoing business transformation and sharpens
Avantor's strategic focus
- Strengthens balance sheet with proceeds to be used for debt
paydown
RADNOR,
Pa., Aug. 16, 2024 /PRNewswire/ -- Avantor,
Inc. (NYSE: AVTR), a leading global provider of
mission-critical products and services to customers in the life
sciences and advanced technologies industries, today announced the
signing of a definitive agreement to divest its clinical services
business, including kitting, biorepository, and related equipment
and ancillaries (collectively "Clinical Services"), to Audax
Private Equity ("Audax") for a transaction value of approximately
$650 million.
"Today's announcement is an important step for Avantor as we
continue to optimize our portfolio in line with our new operating
model," said Michael Stubblefield,
President and Chief Executive Officer. "The divestiture enables us
to enhance our focus on strategic growth opportunities in our lab
and production businesses, while strengthening our balance
sheet."
Mr. Stubblefield continued, "In Audax, we are pleased to have
found a new owner that recognizes the value proposition of this
business and is ideally positioned to invest and grow the platform
for the benefit of all stakeholders."
Additional Transaction Details
The clinical services business has approximately 800 employees
and is part of Avantor's Laboratory Solutions segment. It is
expected to generate approximately $200
million of annual revenue in 2024. The transaction is
expected to close in the fourth quarter of 2024, subject to
regulatory approvals and other customary closing conditions.
Avantor expects the transaction to result in approximately
$475 million in after-tax cash
proceeds and a reduction of approximately $50 million in capitalized leases.
Avantor intends to utilize the after-tax proceeds for debt
paydown, which further strengthens the Company's balance sheet and
reduces interest expense.
Avantor will discuss the divestiture on its third quarter 2024
earnings conference call.
J.P. Morgan Securities LLC is serving as Avantor's exclusive
financial advisor in connection with the transaction, and Arnold
& Porter is serving as Avantor's legal advisor. Moelis &
Company LLC is serving as financial advisor to Audax and Ropes
& Gray LLP provided legal counsel to Audax.
About Avantor
Avantor® is a leading life science tools company and
global provider of mission-critical products and services to the
life sciences and advanced technology industries. We work
side-by-side with customers at every step of the scientific journey
to enable breakthroughs in medicine, healthcare, and technology.
Our portfolio is used in virtually every stage of the most
important research, development and production activities at more
than 300,000 customer locations in 180 countries. For more
information, visit avantorsciences.com and find us
on LinkedIn, X (Twitter) and Facebook.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, and are subject
to the safe harbor created thereby under the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact included in this press release are
forward-looking statements. Forward-looking statements discuss our
current expectations and projections relating to our financial
condition, results of operations, plans, including our cost
transformation initiative, objectives, future performance and
business. These statements may be preceded by, followed by or
include the words "aim," "anticipate," "assumption," "believe,"
"continue," "estimate," "expect," "forecast," "goal," "guidance,"
"intend," "likely," "long-term," "near-term," "objective,"
"opportunity," "outlook," "plan," "potential," "project,"
"projection," "prospects," "seek," "target," "trend," "can,"
"could," "may," "should," "would," "will," the negatives thereof
and other words and terms of similar meaning.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions; they are not guarantees of
performance. You should not place undue reliance on these
statements. We have based these forward-looking statements on our
current expectations and projections about future events. Although
we believe that our assumptions made in connection with the
forward-looking statements are reasonable, we cannot assure you
that the assumptions and expectations will prove to be correct.
Factors that could contribute to these risks, uncertainties and
assumptions include, but are not limited to, the factors described
in "Risk Factors" in our most recent Annual Report on Form 10-K,
and subsequent quarterly reports on Form 10-Q, as such risk factors
may be updated from time to time in our periodic filings with the
SEC.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the foregoing cautionary statements. In addition, all
forward-looking statements speak only as of the date of this press
release. We undertake no obligations to update or revise publicly
any forward-looking statements, whether as a result of new
information, future events or otherwise other than as required
under the federal securities laws.
Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
+1 805-617-5297
Christina.Jones@avantorsciences.com
Global Media Contact
Eric Van
Zanten
Head of External Communications
Avantor
+1 610-529-6219
Eric.Vanzanten@avantorsciences.com
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SOURCE Avantor, Inc.