Avantor Divests Clinical Services Unit to Audax Private Equity for $650 Million

Divestiture Agreement:
Avantor has agreed to sell its clinical services business to Audax Private Equity for $650 million.

Business Focus:
The sale allows Avantor to focus on strategic growth opportunities in its laboratory and production businesses.

Financial Impact:
The transaction is expected to yield approximately $475 million in after-tax cash proceeds and reduce lease obligations by $50 million.

Use of Proceeds:
Avantor plans to use the proceeds to pay down debt and strengthen its balance sheet.

Clinical Services Business:
The unit employs about 800 people and is expected to generate $200 million in revenue this year, offering services such as kitting and biorepository management.

Audax Private Equity:
Audax has invested in over 170 middle-market companies in North America and Canada since its founding in 1999.

Regulatory Approvals:
The sale is subject to regulatory approvals and is expected to close in the fourth quarter of 2024.