ANAHEIM, Calif.—NuSil Technologies L.L.C. and Avantor Performance Materials L.L.C. have completed their merger, creating an entity for which their majority private equity owner has high hopes.
With the merger complete, NuSil now will serve as a subsidiary of Avantor. Both are owned by the same private equity company, New Mountain Capital, which said in an earlier statement that the combined company presents significant growth opportunities.
The private equity firm remains the majority owner post-merger. Terms of the transaction were not disclosed. Avantor CEO Michael Stubblefield was named the CEO of the combined entity.
Julie Cameron, NuSil's vice president of sales and marketing, said during the recent MDM West show that the two firms have a history of close collaboration and both operate in highly regulated industries that demand high-purity products.
"NuSil is committed to the medical device market," she said. "We're interested in partnering with our customers, and that's where, when you talk about Avantor and NuSil, we have a lot in common. We work in close collaboration with our customers to customize or innovate at any scale in markets that are highly regulated and require high purity."
New Mountain Capital said the combined company becomes a global leader in high-purity materials for the life sciences and advanced technology markets with a portfolio of more than 30,000 products. The combined Avantor's revenue now eclipses $700 million and the firm projects growth of 14 percent per year.
"Avantor and NuSil are leaders in their industries, known for working side-by-side with customers to innovate high-quality products and materials that meet their most stringent requirements," Stubblefield said in a statement. "I look forward to working with our global team to build on this longstanding commitment, while realizing the significant growth opportunities that this merger offers for Avantor."
Stephen Bohn, NuSil's global director for marketing and communications, said that Avantor focuses on the pharmaceutical, laboratory, diagnostic and electronics markets, while NuSil focuses on medical device, aerospace, defense and electronics. The two companies also focus on different technologies—with NuSil bringing its core base of silicone products into the Avantor portfolio of other high-performance chemistries. Prior to the merger, Avantor had not had a silicone presence.
Beyond the market synergies, Avantor brings a global presence to the NuSil base, which prior to the deal operated two manufacturing sites in California and one in Texas. Avantor has a global production network with more than 10 sites across three continents.
"Global footprint is what Avantor brings to us," Bohn said. "Our manufacturing focus has been solely in the U.S., with sales and support in Europe and Asia. But now Avantor allows us to be global in that regard. It's exciting for us.
"Avantor has a strong commitment to innovation," he added. "They're a slightly larger organization, and while they don't have a silicone background they have a strong research and development background on multiple continents."