Moody's maintains B1 rating of merger-bound Avantor
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