Avantor, Inc. announced that it has closed the divestiture of its clinical services business to Audax Private Equity in a transaction valued at approximately $650 million. Avantor expects the transaction to result in approximately $500 million in after-tax cash proceeds and a reduction of approximately $50 million in capitalized leases. After-tax proceeds will be used to paydown debt.
"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," said Michael Stubblefield, President and Chief Executive Officer. "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."