Avantor, a US-based provider of products and services to life sciences customers, has closed the previously announced sale of its clinical services business to Audax Private Equity for about $650m.
In August this year, Avantor signed a definitive agreement to sell its clinical services business.
The clinical services business acquired by Audax includes kitting, biorepository, and related equipment and associated operations.
It was a part of Avantor’s Laboratory Solutions segment which employs around 800 people.
The divested business is expected to generate around $200m in annual revenue this year.
Avantor said the transaction would provide around $500m in after-tax cash proceeds and reduce around $50m in capitalised leases.
The company intends to use the after-tax proceeds from the transaction to repay its debt, further strengthening its balance sheet and reducing interest expense.
J.P. Morgan Securities served as an exclusive financial advisor, and Arnold & Porter as legal advisor to Avantor, on this transaction.
Also, Moelis & Company served as financial advisor and Ropes & Gray provided legal counsel to Audax.
Avantor president and CEO Michael Stubblefield said: “This transaction not only strengthens our balance sheet and reduces interest expense, but also enables us to sharpen our focus on strategic growth opportunities in our lab and production businesses.
“We extend our gratitude to the associates transferring with the business for their invaluable contributions and wish them continued success as they embark on this new chapter under Audax’s ownership.”
