Avantor® Closes Previously Announced Divestiture of its Clinical Services Business
Avantor (NYSE: AVTR) has closed the divestiture of its clinical services business to Audax Private Equity for approximately $650 million. The transaction is expected to yield $500 million in after-tax cash proceeds and reduce capitalized leases by about $50 million. Avantor plans to use the proceeds to pay down debt.
CEO Michael Stubblefield stated that this move will strengthen the company's balance sheet, reduce interest expenses, and allow focus on strategic growth in lab and production businesses. J.P. Morgan Securities and Arnold & Porter LLP advised Avantor, while Moelis & Company and Ropes & Gray LLP advised Audax in the transaction.
Avantor (NYSE: AVTR) ha completato la cessione del suo business di servizi clinici a Audax Private Equity per un valore di circa 650 milioni di dollari. Si prevede che la transazione genererà 500 milioni di dollari in proventi in contante dopo le tasse e ridurrà i leasing capitalizzati di circa 50 milioni di dollari. Avantor ha intenzione di utilizzare i proventi per ridurre il debito.
Il CEO Michael Stubblefield ha dichiarato che questa mossa rafforzerà il bilancio dell'azienda, ridurrà le spese per gli interessi e consentirà un focus sulla crescita strategica nel business dei laboratori e della produzione. J.P. Morgan Securities e Arnold & Porter LLP hanno consigliato Avantor, mentre Moelis & Company e Ropes & Gray LLP hanno assistito Audax nella transazione.
Avantor (NYSE: AVTR) ha cerrado la desinversión de su negocio de servicios clínicos a Audax Private Equity por aproximadamente 650 millones de dólares. Se espera que la transacción genere 500 millones de dólares en ingresos en efectivo después de impuestos y reduzca los arrendamientos capitalizados en aproximadamente 50 millones de dólares. Avantor planea utilizar los ingresos para pagar deudas.
El CEO Michael Stubblefield afirmó que este movimiento fortalecerá el balance de la empresa, reducirá los gastos por intereses y permitirá enfocarse en el crecimiento estratégico en los negocios de laboratorios y producción. J.P. Morgan Securities y Arnold & Porter LLP asesoraron a Avantor, mientras que Moelis & Company y Ropes & Gray LLP asesoraron a Audax en la transacción.
Avantor (NYSE: AVTR)는 임상 서비스 사업을 Audax Private Equity에 매각하며 약 6억 5천만 달러에 거래를 마무리했습니다. 이 거래는 세후 5억 달러의 현금 수익을 생성할 것으로 예상되며, 자본화된 리스가 약 5천만 달러 감소할 것입니다. Avantor는 이 수익을 부채 상환에 사용할 계획입니다.
CEO Michael Stubblefield는 이 조치가 회사의 재무 상태를 강화하고, 이자 비용을 줄이며, 연구소 및 생산 사업에서 전략적 성장에 집중할 수 있게 할 것이라고 밝혔습니다. J.P. Morgan Securities와 Arnold & Porter LLP는 Avantor에 자문을 제공했으며, Moelis & Company와 Ropes & Gray LLP는 거래에서 Audax를 자문했습니다.
Avantor (NYSE: AVTR) a finalisé la cession de son activité de services cliniques à Audax Private Equity pour environ 650 millions de dollars. La transaction devrait générer 500 millions de dollars de produits en espèces après impôts et réduire les baux capitalisés d'environ 50 millions de dollars. Avantor prévoit d'utiliser les produits pour réduire sa dette.
Le PDG Michael Stubblefield a déclaré que ce mouvement renforcerait le bilan de l'entreprise, réduirait les frais d'intérêt et permettrait de se concentrer sur une croissance stratégique dans les activités de laboratoire et de production. J.P. Morgan Securities et Arnold & Porter LLP ont conseillé Avantor, tandis que Moelis & Company et Ropes & Gray LLP ont conseillé Audax dans cette transaction.
Avantor (NYSE: AVTR) hat die Veräußertung seines Geschäfts mit klinischen Dienstleistungen an Audax Private Equity für etwa 650 Millionen Dollar abgeschlossen. Es wird erwartet, dass die Transaktion 500 Millionen Dollar an nach Steuern erzielten Barerlösen generiert und die kapitalisierten Leasingverträge um etwa 50 Millionen Dollar reduziert. Avantor plant, die Erlöse zur Schuldentilgung zu verwenden.
CEO Michael Stubblefield erklärte, dass dieser Schritt die Bilanz des Unternehmens stärken, die Zinskosten senken und eine konzentrierte strategische Wachstumsfokussierung im Labor- und Produktionsgeschäft ermöglichen wird. J.P. Morgan Securities und Arnold & Porter LLP berieten Avantor, während Moelis & Company und Ropes & Gray LLP Audax in der Transaktion berieten.
- Divestiture valued at approximately $650 million
- Expected $500 million in after-tax cash proceeds
- Reduction of approximately $50 million in capitalized leases
- Proceeds to be used for debt reduction
- Strengthening of balance sheet and reduction of interest expenses
- Potential loss of revenue stream from clinical services business
Insights
The divestiture of Avantor's clinical services business is a significant strategic move with positive financial implications. The
The transaction allows Avantor to streamline its operations and focus on its core lab and production businesses, potentially leading to improved operational efficiency and targeted growth. While the divestiture may result in a short-term revenue reduction, the long-term benefits of a more focused business strategy and improved financial position could outweigh this.
Investors should monitor how effectively Avantor redeploys resources and capitalizes on growth opportunities in its remaining business segments. The company's ability to leverage this strategic shift for enhanced shareholder value will be important in the coming quarters.
This divestiture aligns with broader industry trends of life sciences companies streamlining their portfolios to focus on core competencies. By selling its clinical services business, Avantor is positioning itself to better compete in the high-growth lab and production segments of the life sciences market.
The transaction's valuation appears favorable, potentially reflecting the quality of the divested assets and current market demand for clinical services businesses. Audax Private Equity's acquisition suggests continued private equity interest in the life sciences sector, which could drive further M&A activity.
Investors should consider how this move might impact Avantor's market positioning and competitive landscape. While the company may lose some diversification, the increased focus on lab and production businesses could lead to stronger market share in these segments. Watch for potential shifts in Avantor's growth trajectory and any changes in its relationships with key customers or suppliers following this strategic realignment.
"This transaction not only strengthens our balance sheet and reduces interest expense, but also enables us to sharpen our focus on strategic growth opportunities in our lab and production businesses," said Michael Stubblefield, President and Chief Executive Officer. "We extend our gratitude to the associates transferring with the business for their invaluable contributions and wish them continued success as they embark on this new chapter under Audax's ownership."
J.P. Morgan Securities LLC served as Avantor's exclusive financial advisor in connection with the transaction and Arnold & Porter LLP served as Avantor's legal advisor. Moelis & Company LLC served 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.
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Global Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
Eric.VanZanten@avantorsciences.com
Investor Relations Contact
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Vice President, Investor Relations
Avantor
805-617-5297
Christina.Jones@avantorsciences.com
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SOURCE Avantor and Financial News
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