Engine Capital confirms stake in Avantor, sends letter to board

Engine Capital, which owns approximately 3% of the outstanding shares of Avantor (AVTR), sent a letter to the company’s board “outlining several opportunities to close Avantor’s significant valuation gap and unlock value for shareholders.” The letter states in part, “While not easy, the path to value creation is relatively straightforward: focus the organization on commercial and operational excellence, demonstrate organic growth, reduce costs, optimize the portfolio and use free cash flow to repurchase stock. This will take time and there are execution risks. If the Company pursues this standalone path, follows our recommendations and makes the necessary changes, we believe the stock could be worth between $22 and $26 per share at the end of 2027.13 Alternatively, the Board could consider monetizing the Company at its strategic value today, which we believe would result in a sale between $17 and $19 per share. Engine believes both paths.”