Life sciences tools company Avantor Inc. has announced plans to sell its clinical services business to Audax Private Equity for $650 million, with both parties represented by top law firms. Avantor, advised by Arnold & Porter Kaye Scholer LLP, disclosed the sale on Friday, marking a significant move in its strategy to optimize its portfolio.
Audax to Acquire Avantor Clinical Services : Details of the Acquisition
The clinical services business, which is a part of Avantor’s laboratory solutions segment, employs approximately 800 people and includes operations such as kitting, biorepository services, and related equipment and ancillaries. The business is projected to generate around $200 million in annual revenue in 2024.
“Today’s announcement is an important step for Avantor as we continue to optimize our portfolio in line with our new operating model,” said Michael Stubblefield, President and CEO of Avantor. He emphasized that the divestiture allows Avantor to focus on strategic growth opportunities within its lab and production businesses while also strengthening its financial position.
Audax to Acquire Avantor Clinical Services : Audax’s Strategic Investment
Audax Private Equity, advised by Ropes & Gray LLP, expressed strong confidence in the acquisition. The clinical services business operates 10 facilities across the U.S., U.K., and Europe and maintains a global logistics and equipment services network. This network assists clients in managing complex supply chain needs, a critical component in the life sciences and pharmaceutical industries.
