Avantor, Inc. (AVTR) has announced the signing of a definitive agreement to divest its clinical services business. This divestiture includes kitting, biorepository, and related equipment and ancillaries, and it will be transferred to Audax Private Equity for approximately $650 million. Avantor anticipates that the transaction will yield roughly $475 million in after-tax cash proceeds and lead to a reduction of about $50 million in capitalized leases.
The company intends to use the after-tax proceeds to pay down its debt, thereby further strengthening its balance sheet and reducing interest expenses.
