Avantor to Sell Clinical Services Business in $650M Deal

Dow Jones08-16

By Colin Kellaher

Avantor has agreed to sell its clinical services business to private-equity firm Audax Private Equity in a transaction valued at about $650 million.

Avantor on Friday said it expects the deal to yield cash proceeds of about $475 million, along with a roughly $50 million reduction in capitalized leases.

The Radnor, Pa., company, which provides products and services to the life-sciences and advanced technologies industries, said the sale sharpens it focus on growth opportunities in its lab and production businesses, adding that it will use the proceeds to pare its debt load.

The deal is slated to close by the end of the year.

Avantor said its clinical services business, which has about 800 employees, expects to generate around $200 million of revenue this year. Avantor posted sales of $3.38 billion for the first six months of 2024.

Boston-based Audax is a middle-market investment firm with about $19 billion of assets under management.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 16, 2024 07:57 ET (11:57 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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