Avantor Clinical Services Sold for $650M

For $650 million, biopharma supplier Avantor is selling its clinical services division to Audax Private Equity. With 800 employees, the clinical services division offers kitting, biorepositories, and associated ancillaries. In the coming year, the Avantor division is anticipated to generate $200 million in sales annually.

The deal is expected to finalise in Q4 of 2024 and bring Avantor approximately $475 million in cash revenues after taxes.

Avantor President and CEO Michael Stubblefield stated: “The divestiture enables us to enhance our focus on strategic growth opportunities in our lab and production businesses, while strengthening our balance sheet.”

This year, Avantor unveiled a revamped operational strategy that divides the company into two worldwide segments: laboratory solutions and bioscience manufacturing. The lab solutions sector included the clinical services section.

The international supplier intends to use the proceeds of the transaction to lower interest costs and pay off debt.