(Corrects paragraph 4 to say VWR was bought by Madison Dearborn
Partners, not Madison Capital Partners)
* Deal worth about $4.38 bln, enterprise value $6.4 bln
* Offer for $33.25 per share in cash
* Avantor CEO Michael Stubblefield to lead combined company
* VWR down 3.4 pct premarket
By Divya Grover
May 5 Private equity firm New Mountain Capital's
Avantor will buy VWR Corp for about $4.38 billion,
creating a global lab equipment giant supplying everything from
beakers to microscopes to the healthcare and technology
The deal combines Avantor's strength in manufacturing and
its presence in emerging markets with VWR's distribution network
in the Americas and Europe, the companies said.
Avantor, formed in August 2010 when New Mountain Capital
purchased the business from Covidien Inc, manufactures materials
and chemicals for the biopharma industry.
VWR, a company that traces its roots to the California Gold
Rush in the 1850s, was bought by Madison Dearborn Partners in
2007 and went public in October 2014.
Avantor's offer of $33.25 per share in cash represents a
discount of 2.3 percent to VWR's Thursday close. VWR's shares
were down 3.4 percent at $32.90 before the bell on Friday.
The company's shares have risen 19.4 percent since May 2,
the day before the Wall Street Journal first reported the
companies were nearing a deal. (on.wsj.com/2pHi0n5)
The companies said the deal reflects an enterprise value of
about $6.4 billion.
For New Mountain Capital, the deal adds heft to its
healthcare portfolio, which includes companies ranging from
contact lens supplier ABB Optical to medical data firm Ciox
"This may be a strategic acquisition for New Mountain, in
line with a "deep dive" strategy where it aims to build a
portfolio presence in a few niche sectors, including
healthcare," William Blair's Amanda Murphy wrote in a client
note on Thursday.
Avantor Chief executive Michael Stubblefield will lead the
combined company, while New Mountain Capital will continue to be
the lead shareholder, the companies said on Friday.
Goldman Sachs, Jefferies and Barclays are the financial
advisers to Avantor, while Simpson Thacher & Bartlett LLP is the
BofA Merrill Lynch advised VWR, while Kirkland & Ellis LLP
was the legal adviser.
(Reporting by Ankit Ajmera and Divya Grover in Bengaluru;
Editing by Saumyadeb Chakrabarty)