Avantor ( NYSE: AVTR ) said it will divest its clinical services business, including kitting, biorepository, and related equipment and ancillaries to Audax in a $650 million deal. The firm expects the deal to result in ~$475 million in after-tax cash proceeds and a reduction of ~$50 million in capitalized leases. The clinical services business has ~800 employees and is expected to generate ~$200 million of annual revenue in 2024.
The company will use the after-tax proceeds for debt paydown. The deal is expected to close in the fourth quarter of this year. More on Avantor Avantor: Yet To Evidence Economic Value For Valuation Repricing, Reiterate Hold Avantor, Inc.
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