PE firm Audax buys Avantor’s clinical business for $650m
Audax Private Equity has acquired Avantor’s clinical services business and rebranded it as Resonant Clinical Solutions.
The deal, which values the business at $650 million, will see Resonant operate three brands: EPL Archives, MESM ,and Therapak. The idea is to work with pharmaceutical, biotechnology, CRO, and diagnostic laboratory customers.
Audax managing director Stephen Weaver said, “We are grateful for Avantor’s stewardship and support of Resonant’s growth over the last seven years and are excited to support the company in its next phase of growth as an independent platform in the outsourced clinical trial services sector.”
This optimism was echoed by Audax partner David Wong, who cited the CRO’s access to the market and specialist capabilities as key.
“We believe Resonant’s long-tenured customer relationships — built on years of partnership with clients — position the company well to accelerate growth.
“Increasing complexity of clinical trial services is driving pharma sponsors and CROs to outsource these services to specialists. Resonant’s solution set allows its clients to better manage this complexity and focus their energy on drug discovery and R&D.”
Avantor expects the divestiture to result in approximately $500 million in after-tax cash proceeds and a reduction of approximately $50 million in capitalized leases. Proceeds will be used to paydown debt, according to the company.
Avantor CEO Michael Stubblefield said, “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.”
He added, “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.”
Resonant joins California-headquartered CDMO Pyramid Laboratories as the second pharmaceutical services organization in Audax’s portfolio of healthcare investments.
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