Avantor® Enters into Definitive Agreement to Divest Clinical Services Business to Audax Private Equity
Avantor (NYSE: AVTR) has announced a definitive agreement to divest its clinical services business to Audax Private Equity for approximately $650 million. This strategic move aims to optimize Avantor's portfolio and sharpen its focus on lab and production businesses. The transaction, expected to close in Q4 2024, will generate about $475 million in after-tax cash proceeds, which will be used for debt paydown.
The divested business, part of Avantor's Laboratory Solutions segment, has around 800 employees and is projected to generate approximately $200 million in annual revenue for 2024. This divestiture aligns with Avantor's new operating model and is expected to strengthen the company's balance sheet while reducing interest expenses.
Avantor (NYSE: AVTR) ha annunciato un accordo definitivo per cedere la sua attività di servizi clinici ad Audax Private Equity per circa 650 milioni di dollari. Questa mossa strategica ha l'obiettivo di ottimizzare il portfolio di Avantor e rafforzare la sua concentrazione sulle attività di laboratorio e produzione. La transazione, prevista per la chiusura nel quarto trimestre del 2024, genererà circa 475 milioni di dollari in proventi cash dopo le tasse, che verranno utilizzati per ridurre il debito.
L'attività ceduta, parte del segmento Soluzioni di Laboratorio di Avantor, conta circa 800 dipendenti ed è prevista generare circa 200 milioni di dollari di fatturato annuo per il 2024. Questa dismissione è in linea con il nuovo modello operativo di Avantor e si prevede rafforzerà il bilancio dell'azienda, riducendo le spese per interessi.
Avantor (NYSE: AVTR) ha anunciado un acuerdo definitivo para desinvertir su negocio de servicios clínicos a Audax Private Equity por aproximadamente 650 millones de dólares. Este movimiento estratégico tiene como objetivo optimizar el portafolio de Avantor y centrar su atención en los negocios de laboratorio y producción. La transacción, que se espera que cierre en el cuarto trimestre de 2024, generará aproximadamente 475 millones de dólares en ingresos netos después de impuestos, que se utilizarán para pagar deudas.
El negocio desinvertido, parte del segmento de Soluciones de Laboratorio de Avantor, cuenta con alrededor de 800 empleados y se proyecta que generará aproximadamente 200 millones de dólares en ingresos anuales para 2024. Esta desinversión se alinea con el nuevo modelo operativo de Avantor y se espera que fortalezca el balance de la empresa mientras reduce los gastos por intereses.
Avantor (NYSE: AVTR)는 임상 서비스 사업을 매각하는 최종 계약을 Audax Private Equity에 약 6억 5천만 달러에 체결했다고 발표했습니다. 이 전략적 결정은 Avantor의 포트폴리오를 최적화하고 실험실 및 생산 사업에 집중하기 위한 것입니다. 이번 거래는 2024년 4분기 마감될 것으로 예상되며, 약 세금 후 현금 수익 4억 7천5백만 달러를 발생시킬 것으로 기대되며, 이는 부채 상환에 사용될 예정입니다.
매각된 사업은 Avantor의 실험실 솔루션 부문의 일부로 약 800명의 직원이 있으며, 2024년에는 약 2억 달러의 연간 매출을 생성할 것으로 예상됩니다. 이 매각은 Avantor의 새로운 운영 모델과 일치하며, 회사의 재무 구조를 강화하고 이자 비용을 줄일 것으로 기대됩니다.
Avantor (NYSE: AVTR) a annoncé un accord définitif pour céder son activité de services cliniques à Audax Private Equity pour environ 650 millions de dollars. Ce mouvement stratégique vise à optimiser le portefeuille d'Avantor et à concentrer son attention sur les activités de laboratoire et de production. La transaction, qui devrait être finalisée au quatrième trimestre 2024, devrait générer environ 475 millions de dollars de recettes après impôts, qui seront utilisées pour rembourser des dettes.
L'activité cédée, faisant partie du segment Solutions de Laboratoire d'Avantor, compte environ 800 employés et devrait générer environ 200 millions de dollars de chiffre d'affaires annuel pour 2024. Cette cession s'inscrit dans le nouveau modèle opérationnel d'Avantor et devrait renforcer la situation financière de l'entreprise tout en réduisant les charges d'intérêts.
Avantor (NYSE: AVTR) hat eine endgültige Vereinbarung zur Veräußerung seines klinischen Dienstleistungsbereichs an Audax Private Equity für ungefähr 650 Millionen Dollar bekannt gegeben. Dieser strategische Schritt zielt darauf ab, Avantors Portfolio zu optimieren und den Fokus auf Labor- und Produktionsgeschäfte zu schärfen. Die Transaktion wird voraussichtlich im vierten Quartal 2024 abgeschlossen und wird etwa 475 Millionen Dollar an Nachsteuerbareinnahmen generieren, die zur Schuldenreduzierung verwendet werden sollen.
Das veräußerte Geschäft, das Teil von Avantors Laborlösungssegement ist, hat etwa 800 Mitarbeiter und wird voraussichtlich etwa 200 Millionen Dollar Jahresumsatz für 2024 generieren. Diese Veräußerung steht im Einklang mit Avantors neuem Betriebsmodell und wird voraussichtlich die Bilanz des Unternehmens stärken und die Zinsaufwendungen senken.
- Divestiture will generate approximately $475 million in after-tax cash proceeds
- Proceeds will be used for debt paydown, strengthening the balance sheet
- Transaction value of approximately $650 million
- Allows Avantor to focus on strategic growth opportunities in lab and production businesses
- Expected reduction of approximately $50 million in capitalized leases
- Loss of approximately $200 million in annual revenue from the divested business
- Reduction of workforce by approximately 800 employees
Insights
This divestiture marks a significant strategic shift for Avantor, with both immediate and long-term implications. The
However, investors should note that this move will result in a revenue reduction of about
Overall, this transaction aligns with Avantor's strategy to focus on higher-margin lab and production businesses, which could lead to improved profitability ratios in the long term, albeit at the cost of some revenue growth.
Avantor's decision to divest its clinical services business reflects a broader trend in the life sciences industry towards specialization and focus on core competencies. This move allows Avantor to concentrate on its lab and production businesses, which likely offer higher growth potential and better align with the company's long-term strategy.
The transaction also highlights the ongoing consolidation in the clinical services sector, with private equity firms like Audax seeing value in these assets. This could signal potential for further M&A activity in the space, which investors should monitor closely.
For Avantor, this divestiture may result in a short-term growth slowdown but could lead to improved operational efficiency and higher margins in the medium to long term. Investors should watch for updates on how Avantor plans to reinvest in its core businesses to drive future growth and maintain its competitive position in the life sciences and advanced technologies markets.
- Accelerates ongoing business transformation and sharpens Avantor's strategic focus
- Strengthens balance sheet with proceeds to be used for debt paydown
"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
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.
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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.
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