Fitch assigns B to Avantor

Fitch Ratings said it assigned a B issuer default rating and stable outlook to Avantor, Inc.

The action follows the announcement that Avantor will acquire VWR Corp. in a $6.4 billion transaction, or $33.25 in cash per share of VWR common stock. The acquisition will be financed with a $3 billion term loan (split into dollar- and euro-denominated tranches), $2 billion secured notes (split into dollar- and euro-denominated tranches), $2.25 billion in unsecured notes, $2 billion of senior PIK preferred equity and $1.65 billion of convertible preferred equity.

The company will draw on its accounts receivable facility to pay deal expenses.

“Avantor's acquisition of VWR strengthens the combined entity's portfolio of products and customer relationships,” Fitch said in a news release.

“VWR has solid industry positions supported by extensive brand recognition and reputation. It also has a highly diversified portfolio of products and customers within the laboratory supply market, with $4.6 billion in annual sales. Legacy Avantor helps to fill geographic and product/platform gaps.”

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