Avantor to divest its clinical services business to Audax for $650M

Avantor announced the signing of a definitive agreement to divest its clinical services business, including kitting, biorepository, and related equipment and ancillaries, to Audax Private Equity for a transaction value of approximately $650M. The clinical services business has approximately 800 employees and is part of Avantor’s Laboratory Solutions segment. It is expected to generate approximately $200M of annual revenue in 2024. The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions. Avantor expects the transaction to result in approximately $475M in after-tax cash proceeds and a reduction of approximately $50M in capitalized leases. Avantor intends to utilize the after-tax proceeds for debt paydown, which further strengthens the company’s balance sheet and reduces interest expense.