Avantor, a supplier of essential products and services, has reached an agreement to sell its clinical services business to Audax Private Equity for a transaction value of around $650m.
The clinical services division includes kitting, biorepository, and associated equipment and ancillary services.
The business offers supply chain solutions for clinical trials and laboratories, catering to pharmaceutical and biotechnology companies, contract research organisations (CROs), and diagnostic labs.
With operations in ten facilities across the US, UK, and Europe, the arm also boasts a global logistics and equipment services network.
The reach and capabilities position Clinical Services as a preferred partner for managing complex and evolving supply chain requirements, Audax said.
Additionally, the company specialises in active trial and post-trial sample storage and archiving, supply chain management, and packaging and logistics for sample collection.
These services are delivered through three key offerings and established brands including EPL Archives, MESM, and Therapak.
Avantor president and CEO Michael Stubblefield said: “The divestiture enables us to enhance our focus on strategic growth opportunities in our lab and production businesses, while strengthening our balance sheet.”
“In Audax, we are pleased to have found a new owner that recognises the value proposition of this business and is ideally positioned to invest and grow the platform for the benefit of all stakeholders.”
Audax has previously acquired companies such as Aspen Surgical, Lifemark, and others.
The firm also has experience in the healthcare sector, with a portfolio that encompasses companies in pharmaceutical services, life science tools, medical technology, and value-based care.
In July last year, Audax unveiled its plans to divest CorEvitas to Thermo Fisher Scientific for $912.5m.
Audax Private Equity partner David Wong said: “We appreciate the unique capabilities that this business delivers to some of the most demanding customers in the pharma and life sciences sectors, and we look forward to investing aggressively to expand the Company’s commercial and technical reach.
“We believe the services that this business provides represent the backbone for advancing therapeutic development.”
The deal is anticipated to be finalised in Q4 of 2024, pending regulatory approvals and other customary closing conditions.
