Avantor® Announces Offering of Common Stock

Rhea-AI Summary

Avantor announced plans to offer $750 million of common stock in an underwritten offering, related to a pending acquisition of the Masterflex bioprocessing business. The proceeds will also support debt financing. Underwriters may purchase additional shares within 30 days. The company aims to use net proceeds primarily for the acquisition, or for general corporate purposes if not completed. The offering's managers include Goldman Sachs, Citigroup, and BofA Securities.

Positive

• The offering of $750 million aims to finance the acquisition of the Masterflex bioprocessing business, which could enhance growth prospects.

Negative

• The stock offering may lead to dilution for existing shareholders.
• Market reactions could be adverse due to uncertainty around acquisition completion.

RADNOR, Pa., Sept. 13, 2021 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR) ("Avantor," "we" or the "Company"), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technologies & applied materials industries, today announced that the Company intends to offer for sale in an underwritten offering $750 million of its common stock pursuant to a registration statement filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"). The Company expects to grant the underwriters a 30-day option to purchase additional shares of common stock on the same terms and conditions. The Company intends to use the net proceeds from this offering, along with the proceeds from certain debt financing transactions, to finance its previously announced acquisition of the Masterflex bioprocessing business and related assets of Antylia Scientific. To the extent the acquisition is not consummated, the Company anticipates using the net proceeds of the offering for general corporate purposes.

Goldman Sachs & Co. LLC, Citigroup and BofA Securities are serving as the joint book-running managers and as representatives of the underwriters for the offering.

A registration statement relating to these securities has been filed with the SEC and has become effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering of these securities will be made only by means of a prospectus supplement and accompanying prospectus. Copies of the preliminary prospectus supplement and accompanying prospectus for the offering, when available, may be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department at 200 West Street, New York, NY 10282 or by telephone at 1-866-471-2526; Citigroup Global Markets Inc., Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone 1-800-831-9146 or by email at Prospectus@citi.com; or BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department or by email at dg.prospectus_requests@bofa.com.

About Avantor

Avantor®, a Fortune 500 company, is a leading global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. Our portfolio is used in virtually every stage of the most important research, development and production activities in the industries we serve. Our global footprint enables us to serve more than 225,000 customer locations and gives us extensive access to research laboratories and scientists in more than 180 countries. We set science in motion to create a better world.

Forward Looking Statements

This press release contains forward-looking statements. 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 announced transaction with Masterflex and the related financing, as well as our financial condition, results of operations, plans, objectives, future performance and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "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, our current expectations and assumptions regarding capital market conditions, our ability to successfully integrate Masterflex into our operations and achieve anticipated synergies and our ability to execute related financing on favorable terms, as well as the factors described in "Risk Factors" in our 2020 Annual Report on Form 10-K for the year ended December 31, 2020, and in any subsequent Quarterly Reports on Form 10-Q.

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.

Media Contact
Allison Hosak
Senior Vice President, Global Communications and Brand
Avantor
+1 908-329-7281
Allison.Hosak@avantorsciences.com

Investor Relations Contact 
Tommy J. Thomas, CPA
Vice President, Investor Relations
Avantor
+1 781-375-8051
Tommy.Thomas@avantorsciences.com

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SOURCE Avantor and Financial News

FAQ

What is Avantor's recent stock offering?

Avantor announced a $750 million underwritten offering of common stock to finance its acquisition of the Masterflex business.

How will Avantor use the proceeds from the stock offering?

The proceeds will primarily fund the acquisition of Masterflex, with remaining funds allocated to general corporate purposes if the acquisition doesn't close.

Who are the underwriters for Avantor's stock offering?

Goldman Sachs, Citigroup, and BofA Securities are serving as the joint book-running managers for the offering.

What risks are associated with Avantor's stock offering?

The offering could dilute existing shares and may result in negative market reactions due to the uncertainty surrounding the acquisition.

What could affect the completion of Avantor's acquisition?

Factors such as capital market conditions and integration challenges may impact the successful closing of the Masterflex acquisition.