Sept 7 (Reuters) - U.S. lab products provider Avantor Inc
will buy Masterflex from privately held Antylia
Scientific in a $2.9 billion all-cash deal to beef up its
COVID-19 therapy and vaccine manufacturing operations.
The purchase, announced on Tuesday, would enable Avantor to
take advantage of strong demand for vaccines as the Delta
variant drives a jump in U.S. infections and evidence emerges of
waning antibody levels in vaccinated people.
A top U.S. health official said last week that the
government plans to invest $3 billion in the vaccine supply
chain, as it prepares to begin offering a booster shot to
Other medical equipment makers have also made acquisitions
to expand their COVID-19 vaccine manufacturing capabilities,
with Danaher Corp agreeing in June to buy Moderna Inc
supplier Aldevron for about $9.6 billion.
Illinois-based Masterflex manufactures products such as
peristaltic pumps, used for research and production of biologic
drugs, vaccines and cell and gene therapies. The net purchase
price for the deal is about $2.7 billion, given expected tax
Avantor said the purchase was likely to add to its adjusted
earnings in the first year after the deal's close, expected in
the last quarter of 2021.
The Masterflex buyout comes on the heels of Avantor's $1.1
billion deal in April to buy Ritter, a German COVID-19 PCR test
While demand for COVID-19 testing has slowed from its peak
last year following vaccinations, some testing companies have
said the Delta variant was driving a rebound in demand.
(Reporting by Mrinalika Roy and Amruta Khandekar in Bengaluru;
Editing by Aditya Soni)