Avantor’s stock has dropped nearly 50% this year amid weaker demand, a CEO transition, and recent earnings showing flat organic revenue and lower profit.
Avantor Inc. is likely to garner heavy investor attention on Monday as activist investor Engine Capital has reportedly taken a roughly 3% stake and plans to push the life-sciences supplier to consider selling itself or pursuing other changes.
The Radnor, Pennsylvania-based company, which sells laboratory equipment and supplies to life sciences companies, governments, and schools, has seen its market value erode by nearly 50% to about $7.8 billion this year, The Wall Street Journal reported.
Demand has weakened, particularly in the government and education sectors, following research funding cuts by the Trump administration. The departure of its longtime CEO in April further weighed on the stock.
Engine believes Avantor could fetch $17 to $19 per share in a sale, representing about 48% to 65% upside from Friday’s close of $11.50.
If the company opts to remain independent, Engine is reportedly calling for changes such as a board refresh, increased buybacks, cost cuts, or divestitures of noncore assets, and estimates shares could climb as high as $26 by the end of 2027.
The forthcoming activist stake disclosure comes days after Avantor reported second-quarter earnings, in which net sales decreased 1% to $1.68 billion, while organic revenue was flat. Net income decreased to $64.7 million from $92.9 million a year earlier, and adjusted EPS decreased to $0.24 from $0.25.
Avantor went public in 2019 after being owned by private-equity firm New Mountain Capital.
Engine, founded in 2013 by Arnaud Ajdler, launched a proxy fight at Lyft earlier this year but later dropped it after the ride-hailing company expanded its share buyback program.
On Stocktwits, retail sentiment for Avantor was ‘bearish’ amid ‘low’ message volume.
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