Specialty materials manufacturer Avantor Inc. plans to acquire Radnor, Pa.-based laboratory supply distributor VWR Corp. for approximately $6.4 billion. Leverage, including the preferred stock, will be high at about the mid 11x area, and excluding the preferred stock it will be around 7.7x. We are affirming our 'B' corporate credit rating on Avantor Inc. and revising the outlook to stable from developing. The stable outlook reflects the increased scale and diversity of the combined entity, despite higher leverage, and our expectation that the company will generate steady growth and moderate free cash flow. On Sept. 5, 2017, S&P Global Ratings affirmed its 'B' corporate credit rating on Center Valley, Pa.-based Avantor Inc. and revised the outlook to stable from developing.
