Avantor will acquire VWR for $33.25 per Common Share in an all cash transaction valued at US$6.4bn
Avantor, a global supplier of ultra-high-purity materials for the life sciences and advanced technology industries, and VWR – a global independent provider of product, supply chain, and service solutions to laboratory and production customers – have entered into an agreement under which Avantor will acquire VWR for US$33.25 in cash per share of VWR common stock, reflecting an enterprise value of approximately $6.4 billion.
Avantor's acquisition of VWR will create a major consumables-focused solutions and services provider to the high-growth life sciences and advanced technologies industries, as well as education, government, and research institutions across the globe.
The companies said the acquisition will build on each company's strengths, including Avantor's cGMP manufacturing processes, significant exposure to emerging markets and VWR's significant position across the Americas and Europe.
Michael Stubblefield, CEO of Avantor, said: "Avantor's acquisition of VWR is both highly compelling and complementary. We will bring together our well-known expertise in ultra-high-purity materials and customized solutions with VWR's global scale, unparalleled channel access, and deep customer relationships. Collectively, this will create a larger, stronger and more diversified company with significantly enhanced scale and product breadth. The global customers that we plan to serve in a more high-touch manner will immediately benefit from the combination, as we will provide end-to-end solutions that offer increased quality, effectiveness, and productivity."
Stubblefield added: "We look forward to welcoming VWR's more than 10,000 employees to Avantor and to our continued success as one team upon the successful completion of the transaction.”
Manuel Brocke-Benz, President and CEO of VWR, said, "Since our IPO, VWR has made significant progress executing on our strategy to drive organic growth, and the first quarter 2017 results …. clearly show that VWR's growth story remains on track. Given the changing dynamics in the highly fragmented and diverse life sciences sector, we believe that combining Avantor's advanced materials and solutions with VWR's unparalleled distribution capabilities and breadth of offerings represents a compelling value proposition. I am confident that this acquisition will create a highly differentiated organisation, one that is uniquely positioned to serve the growing needs of laboratory and production customers around the world."
The agreement followed the unanimous approval by the Board of Directors of both VWR and Avantor. Completion of the transaction is subject to antitrust considerations and European Commission approval. Following the closing of the acquisition, which is expected in the third quarter of 2017, New Mountain Capital will be the lead shareholder of the combined company, and MDP will not own any shares of common stock of the combined company. The combined company will be led by Stubblefield upon closing.