Moody's maintains B1 rating of merger-bound Avantor

By Gareth Macdonald

- Last updated on GMT

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iStock/designer491

Related tags Revenue Pharmacology

Avantor Performance Materials has had its positive rating reiterated by Moody’s just days before its merger with Nusil Technology is expected to complete.

The US agency rated Avantor as B1​ – an indication it thinks investments in the firm are low to medium risk – based on its established customer base and “strong P&L performance in recent quarters.” 

The note was issued as Avantor works to complete its merger with Nusil Technology, a follow portfolio company of US private equity backer, New Mountain Capital.

The deal – which was announced in August - will combine Avantor’s fine chemistry and materials businesses with Nusil’s portfolio of silicone-based pharmaceutical excipients to create a company with annual revenue of around $700m (€622m).

At the time New Mountain said the resulting entity – which will be called Avantor – “will be particularly well positioned to support the industrialization of the biopharmaceutical sector through its bioprocessing and biomaterials offerings with a focus on productivity and quality​.”

New York, US-based New Mountain has been an investor in Avantor since 2010 and in Nusil since 2011.

The firm did not respond to a request for comment.

Financials

Avantor is incorporated in Luxembourg, but headquartered in Pennsylvania. The firm employs 1,200 staff and – in addition to the pharmaceutical industry – supplies laboratory, microelectronic and diagnostic products industries.

According to Moody’s Avantor generated revenue of $456m and operating income of $92 million in 2015, Around 54% of the firm’s revenue came from North America, 16% from Europe, 13% from India, 8% from Asia, and 3% from Latin America

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