- Transformative New Operating Model to Feature Two Complementary
Business Segments Aligned to Customer Needs: Laboratory Solutions
and Bioscience Production
- Company Launches Cost Optimization Initiative to Deliver
$300M in Run Rate Savings by the end
of 2026
- Reaffirms Fiscal Year 2023 Guidance
RADNOR,
Pa., Dec. 7, 2023 /PRNewswire/ -- Avantor, Inc.
(NYSE: AVTR), a leading global provider of mission-critical
products and services to customers in the biopharma and healthcare,
education and government, and advanced technologies industries,
will host an Investor Day tomorrow to discuss the company's
strategic growth plans. During the event, Avantor will outline its
plans to transform the business by implementing a new operating
model and advancing a multi-year cost optimization initiative.
Under the new model, Avantor will transition from three geographic
segments to two complementary business segments focused on customer
needs: Laboratory Solutions and Bioscience Production.
"There has never been a more exciting time to serve science, and
we are a trusted and proven partner to our customers at every step
of their scientific journey. Aligning our model with our research
and production capabilities is a natural evolution of our business
that will strengthen our performance, sharpen our focus on
accelerating customers' innovation and unlock significant operating
efficiencies," said Michael
Stubblefield, President and Chief Executive Officer.
"Over the past decade, we have built a Fortune 500 Life Science
Tools leader, and our new operating model builds on the strength of
Avantor's platform and will position our company for long-term
growth. We look forward to sharing our transformation and strategy
with investors tomorrow," Stubblefield concluded.
Introduces New Operating Model with Two Complementary
Business Segments
- The Laboratory Solutions segment (LSS) represents
an estimated $4.7B1 in
annual revenue and positions Avantor as a trusted partner at more
than 300,000 customer locations in 180 countries. The Laboratory
Solutions segment leverages a comprehensive portfolio of products,
services and digital solutions to enable insights in life science
research, diagnostic and quality control workflows and creates a
critical access point for seeding proprietary products to
support Avantor's production segment.
Randy Stone will serve as Executive
Vice President of Laboratory Solutions. Mr. Stone currently serves
as Executive Vice President, Proprietary Research Products and
Materials. Prior to joining Avantor, Mr. Stone had a 16-year tenure
at DuPont in the Americas and Asia
Pacific, most recently as President of the Mobility and
Materials business.
- The Bioscience Production segment (BPS) represents an
estimated $2.3B1 in annual
revenue and provides mission-critical, high-purity materials and
solutions for bioprocessing, healthcare, and advanced technologies.
Through this segment, Avantor is specified into 85% of the top 20
commercial biologic therapies and is the leading supplier of
medical-grade silicones for a wide range of life-changing medical
devices.
Benoit Gourdier will serve as
Executive Vice President of Bioscience Production. Mr. Gourdier
currently serves as Executive Vice President, Biopharma Production
and recently joined Avantor following a 25-year career driving
growth and leading commercial organizations, most recently as
Senior Vice President and General Manager,
BioReliance® Contract Testing Services at Millipore
Sigma.
- Avantor's sales organization in the Americas and Europe and global strategic partners
organization will be realigned under Jim
Bramwell in his new role as Executive Vice President, Sales.
Mr. Bramwell currently serves as Executive Vice President, Americas
and has been with the company for 30 years in a variety of
commercial leadership roles.
Changes to Avantor's operating model and organizational
structure, including Mr. Stone's, Mr. Gourdier's, and Mr.
Bramwell's new leadership roles, will become effective January 1, 2024. Earnings will be reported under
this structure beginning in April with first quarter 2024 results.
Two years of financial statements reflecting the new business
segments will be provided in February
2024 to assist with the comparability of information to be
presented in accordance with the new business segments.
As part of the business segment realignment, Sheri Lewis, Executive Vice President, Global
Supply Chain and Frederic
Vanderhaegen, Executive Vice President, Europe, will depart Avantor in 2024 after
supporting the transition to the new operating model.
Launches Cost Optimization Initiative
In connection with its new operating structure, Avantor is
advancing a global cost optimization initiative to further enhance
productivity through increased organizational efficiency, footprint
optimization, reduced cost-to-serve and procurement savings that
are expected to generate approximately $300
million in run rate cost savings by the end of 2026.
Reaffirms FY2023 Guidance
Avantor also reaffirmed the fiscal year 2023 guidance provided
by management during the third quarter earnings call.
Tomorrow, Avantor's Investor Day will begin at 9:00 a.m. ET and conclude at approximately
12:00 p.m. ET. The live virtual event
will be available on the Events & Presentations page in the
Investor section of Avantor's website, ir.avantorsciences.com.
The investor presentation and a replay of the webcast will also be
available on the investor relations website following the
event.
About Avantor
Avantor®, a Fortune 500
company, is a leading global provider of mission-critical products
and services to customers in the life sciences and technology
industries. Our portfolio is used in virtually every stage of the
most important research, development and production activities in
the industries we serve. Our global footprint enables us to serve
more than 300,000 customer locations and gives us extensive access
to research laboratories and scientists in more than 180 countries.
We set science in motion to create a better world. For more
information, visit avantorsciences.com and find us on LinkedIn,
Twitter and Facebook.
Forward-Looking and Cautionary Statements
This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and are subject to the safe harbor
created thereby under the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical
fact included in this press release are forward-looking statements.
Forward-looking statements discuss our current expectations and
projections relating to our financial condition, results of
operations, plans, objectives, future performance and
business. These statements may be preceded by, followed by or
include the words "aim," "anticipate," "assumption," "believe,"
"continue," "estimate," "expect," "forecast," "goal," "guidance,"
"intend," "likely," "long-term," "near-term," "objective,"
"opportunity," "outlook," "plan," "potential," "project,"
"projection," "prospects," "seek," "target," "trend," "can,"
"could," "may," "should," "would," "will," the negatives thereof
and other words and terms of similar meaning.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions; they are not guarantees of
performance. You should not place undue reliance on these
statements. We have based these forward-looking statements on our
current expectations and projections about future events. Although
we believe that our assumptions made in connection with the
forward-looking statements are reasonable, we cannot assure you
that the assumptions and expectations will prove to be correct.
Factors that could contribute to these risks, uncertainties and
assumptions include, but are not limited to, the factors described
in "Risk Factors" in our most recent Annual Report on
Form 10-K and quarterly reports on
Form 10-Q, as such risk factors may be updated from time
to time in our periodic filings with the SEC.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the foregoing cautionary statements. In addition, all
forward-looking statements speak only as of the date of this press
release. We undertake no obligations to update or revise publicly
any forward-looking statements, whether as a result of new
information, future events or otherwise other than as required
under the federal securities laws.
1 Estimated FY2023 annual revenue
Global Media Contact
Emily
Collins
Vice President, External Communications
Avantor
332-239-3910
Emily.Collins@avantorsciences.com
Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
805-617-5297
Christina.Jones@avantorsciences.com
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SOURCE Avantor and Financial News