Avantor has unveiled its plans to embark on a transformative journey aimed at revolutionizing its business operations. As part of this initiative, the company will implement a new operating model and launch a multi-year cost optimization program.
Streamlining Segments for Enhanced Focus
Avantor will undergo a significant restructuring by transitioning from its current three geographic segments to two focused business segments: Laboratory Solutions and Bioscience Production. This strategic move will enable the company to streamline its operations and drive synergies across its portfolio.
Laboratory Solutions: Enabling Scientific Advancements
The Laboratory Solutions segment will leverage Avantor’s comprehensive portfolio of products, services, and digital solutions to facilitate breakthroughs in life science research, diagnostic processes, and quality control workflows. It will also play a vital role in introducing Avantor’s proprietary products to support the production segment. Randy Stone, currently EVP of proprietary research products and materials, will take on the role of EVP for this segment.
Bioscience Production: Fueling Innovation
The Bioscience Production segment will focus on providing mission-critical, high-purity materials and solutions for bioprocessing, healthcare, and advanced technologies. This will empower Avantor to meet the growing demand for cutting-edge solutions in these sectors. Benoit Gourdier, currently EVP of biopharma production, will lead this segment as EVP.
Driving Cost Efficiency and Savings
In addition to the operational changes, Avantor also announced its global cost optimization initiative. This program aims to enhance organizational efficiency while optimizing footprint, reducing cost-to-serve, and identifying procurement savings. With these measures in place, Avantor anticipates generating approximately $300 million in run rate cost savings by the end of 2026.
These transformative actions will take effect on January 1st, paving the way for Avantor to achieve sustainable growth and deliver greater value to its customers and stakeholders.