{ "docId": "019dd923-622c-750b-8b95-a00c0b305dce", "docSlug": "43e7ee2e62f9", "documentTitle": "Avantor, Inc. (AVTR)", "authorId": "27_Engine_Capital", "authorName": "Arnaud Ajdler", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2025-08-11 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 1, "pageCount": 12, "prevPage": null, "nextPage": 2, "slideType": "executive_summary", "function": "frame_problem", "density": "dense", "nDataPoints": 3, "notes": "This is a formal activist investor letter, serving as the cover page of a presentation deck.", "elementsJson": [ "headline_text", "bullet_list", "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": "https://imgproxy.kitesheet.com/qMd2NdMXiiE0oLRup44dHcm9o86Q82c7roTsn-A7Bzo/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80M2U3ZWUyZTYyZjkvcDAwMS5wbmc", "slideHref": "/slides/019dd923-622c-750b-8b95-a00c0b305dce/1", "deckHref": "/decks/019dd923-622c-750b-8b95-a00c0b305dce", "deckJsonHref": "/decks/019dd923-622c-750b-8b95-a00c0b305dce.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-a00c0b305dce#slide-1", "components": [ { "bbox": null, "kind": "callout", "text": "Believes Years of Self-Inflicted Issues Have Caused Avantor to Trade at a Meaningful Discount to its Intrinsic Value and Life Sciences Peers", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0390-727f-bb8f-4b7c8c611f1d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.8, "x": 0.1, "y": 0.2 }, "kind": "list", "text": "Believes Years of Self-Inflicted Issues Have Caused Avantor to Trade at a Meaningful Discount to its Intrinsic Value and Life Sciences Peers. Contends the Board Has Failed to Remedy Operating Underperformance, Ineffective Cost Controls and Poor Capital Deployment. Makes Clear the Board Needs to Be Refreshed with New Directors. Sees Path to Realizing 100% Upside in Share Price by End of 2027.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "31643706-be18-4468-bcb7-f1ecb9ab47dd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.8, "x": 0.1, "y": 0.75 }, "kind": "paragraph", "text": "Avantor has a strong and profitable legacy, including generating equity returns of greater than 7x from 2010 to 2018 before executing the largest healthcare IPO to date in 2019. However, over the past five years, Avantor has faced sustained operational and financial challenges, including repeated reductions to its financial guidance and consistent underperformance versus investor expectations.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "34dc0970-9d0b-40ce-8f28-1e2b1db43b2d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.1, "y": 0.41 }, "kind": "paragraph", "text": "NEW YORK--(BUSINESS WIRE)--Engine Capital LP (together with its affiliates, “Engine” or “we”), which owns approximately 3% of the outstanding shares of Avantor, Inc. (NYSE: AVTR) (“Avantor” or the “Company”), today sent a letter to the Company’s Board of Directors outlining several opportunities to close Avantor’s significant valuation gap and unlock value for shareholders.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "88b463dd-772b-4df8-b32b-9a442f3226f3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.8, "x": 0.1, "y": 0.62 }, "kind": "paragraph", "text": "Engine Capital LP (together with its affiliates, “Engine” or “we”) is a significant shareholder of Avantor, Inc. (“Avantor” or the “Company”) with ownership of approximately 3% of the Company. We invested in Avantor because of the long-term growth prospects of its bioprocessing division, the defensive nature of the consumables market, the Company’s position as one of the few scaled global distribution platforms, the opportunity to transform its cost structure, its strong recurring revenue profile and our belief that its shares are deeply undervalued.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fca43d73-1fc5-4754-8f97-9d37b3f29850", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.1, "y": 0.92 }, "kind": "source-note", "text": "1 PE Hub article entitled “Avantor marks home run investment for New Mountain amid $3.8 billion public debut” (May 20, 2019).", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37ded5ed-33d6-4a9f-a80b-49ef845e5cec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.1, "y": 0.09 }, "kind": "title", "text": "Engine Capital Sends Letter to Avantor’s Board of Directors Regarding Opportunities to Improve Governance and Unlock Shareholder Value", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c4d3525c-4e26-4ee6-a2ce-b95be7e767b0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Executive summary", "slug": "executive-summary", "agent": null, "layer": "slide", "matchId": "8bcb5a7f-aa9a-453b-adde-b6f54ed15f77", "evidence": "This slide contains a brief summary of Engine Capital's concerns and goals regarding Avantor's governance and shareholder value.", "confidence": 0.9 } ], "frameworks": [], "arcBeats": [ { "to": 1, "from": 1, "beatId": "31406cb4-cc32-4925-8294-abb5f1612ef4", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Situation & Context", "beatSlug": "consultants-gambit-situation-context", "evidence": "The letter is sent to Avantor's Board of Directors", "position": 0, "confidence": 0.8, "parentBeatName": "Setup", "parentBeatSlug": "setup" } ], "loops": [], "imagePathAlt": "https://imgproxy.kitesheet.com/TKj2vK6KtsSBQOsAv97AlG5mv5aRoLKAtzsFVL1BvxY/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80M2U3ZWUyZTYyZjkvcDAwMS5qcGc", "thumbSrc": "https://imgproxy.kitesheet.com/gIX-iJ5r-LtrINbaRN32RN6MTmoeOG4khkcDmlIw0GU/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80M2U3ZWUyZTYyZjkvcDAwMS5wbmc", "thumbSrcAlt": "https://imgproxy.kitesheet.com/s2pN4Xt7WArFWIkrh1k3vFABXhhNQBG7ukt2z73-GXw/rs:fit:480:480:0/q:78/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy80M2U3ZWUyZTYyZjkvcDAwMS5qcGc" }