Avantor Performance Materials and NuSil Technology to merge
The move creates a global leader in life science and advanced technology materials
Avantor Performance Materials and NuSil Technology have agreed to merge.
New Mountain Capital, an investment company based in New York, US, is the majority owner of both companies and will remain so after the merger.
The firms, based in Center Valley, PA and Carpinteria, CA respectively, said the merger will create a global leader in ultra-high-purity materials for the life sciences and advanced technology markets.
The move will enable the firms to meet growing demand for such materials, which has been boosted by technological advances, market expansion and the increasingly strict regulatory and performance specifications of the life sciences and other industries.
The combined company, to be called Avantor, will provide performance materials and systems for the biotechnology, pharmaceutical, medical device, diagnostics, aerospace & defence, and semi-conductor industries.
The deal is expected to close later this month.
Financial terms were not disclosed.
The firms said the new Avantor will be 'particularly well positioned to support the industrialisation of the biopharmaceutical sector through its bioprocessing and biomaterials offerings with a focus on productivity and quality'.
Combined revenue will be in excess of $700 million, growing at 14% a year, the firms said.
'We see significant growth opportunities resulting from the combined resources of Avantor and NuSil,' said Ernest Waaser, CEO of NuSil.
'Both Avantor and New Mountain Capital share the same vision of creating the global sales and technology leader in ultra-high-purity materials for life sciences and advanced technology applications.'
Matt Holt, Managing Director at New Mountain Capital, said: 'Both Avantor and Nusil have transformed in very positive directions under New Mountain’s ownership, with strong organic growth and attractive margins.
'The combined company will have strong positions across the drug lifecycle value chain including particular strengths in the bioprocessing and biomaterials segments, which we see as two highly attractive end markets that increasingly converge.'