RADNOR, PA — Avantor, Inc. (NYSE: AVTR) has finalized the sale of its clinical services division to Audax Private Equity, in a deal valued at approximately $650 million. This transaction is expected to yield around $500 million in after-tax cash proceeds for Avantor, along with a reduction in capitalized leases by about $50 million. The after-tax proceeds will be utilized to reduce the company’s debt.
Michael Stubblefield, Avantor’s President and CEO, emphasized that this move will fortify the company’s financial position by trimming interest expenses while allowing Avantor to concentrate on expanding its core lab and production sectors. “This transaction not only strengthens our balance sheet and reduces interest expense, but also enables us to sharpen our focus on strategic growth opportunities,” Stubblefield noted.
The divestiture aligns with Avantor’s strategic vision, redirecting efforts toward enhancing its laboratory and production offerings. The transition sees the clinical services team joining Audax, where they are expected to continue their progress under new ownership.
J.P. Morgan Securities LLC acted as the exclusive financial advisor for Avantor, with legal advisement from Arnold & Porter LLP. On the Audax side, financial guidance was provided by Moelis & Company LLC, and legal counsel by Ropes & Gray LLP. This sale marks a significant step in Avantor’s strategic realignment, reinforcing its commitment to growth in its key business areas.
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