Avantor, a supplier of ultra-high-purity materials for the life sciences and advanced technology industries has entered a definitive agreement to acquire laboratory products distributor VWR (NASDAQ: VWR), Radnor, PA, for $6.4 billion. The combined company will be a vertically integrated organization, serving a global customer base in all areas of their activities, from research through production.
"Avantor's acquisition of VWR is both highly compelling and complementary," said Michael Stubblefield, CEO of Avantor. "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."
VWR also reported sales for the first quarter of $1.1 billion, an increase of 3.7 percent year-over-year. Profit for the quarter was $38.5 million, compared to $38.8 million in the prior year quarter.
First quarter sales in the Americas grew 3.9 percent year-over-year to $692.8 million, while sales in EMEA-APAC increased 3.4 percent to $446.3 million.
"The first quarter represents a strong start to the year, bolstered by our solid business momentum in EMEA-APAC and improving performance in the Americas," said Manuel Brocke-Benz, president and CEO of VWR. "During the first quarter, organic revenues increased 4.3 percent, with EMEA-APAC up 8.4 percent. Our solid revenue momentum, coupled with our adjusted operating income margin expansion, drove strong bottom-line performance."
