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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
━━━━━━━━━
FORM 10-Q
━━━━━━━━━
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 001-38912
____________________________
AVTR-20210331_G1.JPG
Avantor, Inc.
(Exact name of registrant as specified in its charter)
___________________________________
Delaware 82-2758923
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
Radnor Corporate Center, Building One, Suite 200
100 Matsonford Road
Radnor, Pennsylvania 19087
(Address of principal executive offices) (zip code)
(610) 386-1700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, $0.01 par value AVTR New York Stock Exchange
6.250% Series A Mandatory Convertible Preferred Stock, $0.01 par value AVTR PRA New York Stock Exchange



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ☒ Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller reporting company ☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
On April 21, 2021, 582,138,223 shares of common stock, $0.01 par value per share, were outstanding.


Avantor, Inc. and subsidiaries
Form 10-Q for the quarterly period ended March 31, 2021
Table of contents
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Glossary
Description
we, us, our Avantor, Inc. and its subsidiaries
2019 Plan the Avantor, Inc. 2019 Equity Incentive Plan, a stock-based compensation plan
Adjusted EBITDA our earnings or loss before interest, taxes, depreciation, amortization and certain other adjustments
Annual Report our annual report on Form 10-K for the year ended December 31, 2020
AMEA Asia, Middle-East and Africa
AOCI accumulated other comprehensive income or loss
CARES the Coronavirus Aid, Relief, and Economic Security Act
CERCLA Comprehensive Environmental Response, Compensation, and Liability Act
cGMP Current Good Manufacturing Practice
COVID-19 Coronavirus disease of 2019
double-digit greater than 10%
EURIBOR the basic rate of interest used in lending between banks on the European Union interbank market
FASB the Financial Accounting Standards Board of the United States
GAAP United States generally accepted accounting principles
high single-digit 7 - 9%
LIBOR the basic rate of interest used in lending between banks on the London interbank market
low single-digit 1 - 3%
MCPS 6.250% Series A Mandatory Convertible Preferred Stock
mid single-digit 4 - 6%
PPE personal protective equipment
RSU restricted stock unit
SEC the United States Securities and Exchange Commission
SG&A expenses selling, general and administrative expenses
Specialty procurement product sales related to customer procurement services
VWR VWR Corporation and its subsidiaries, a company we acquired in November 2017

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Cautionary factors regarding forward-looking statements
This report contains forward-looking statements. All statements other than statements of historical fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “projection,” “seek,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning.
Forward-looking statements are inherently subject to risks, uncertainties and assumptions; they are not guarantees of performance. You should not place undue reliance on these statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that our assumptions made in connection with the forward-looking statements are reasonable, we cannot assure you that the assumptions and expectations will prove to be correct.
You should understand that the following important factors, in addition to those discussed under “Risk Factors” in our Annual Report, as such risk factors may be updated from time to time in our periodic filings with the SEC and in this report, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
•disruptions to our operations;
•competition from other industry providers;
•our ability to implement our growth strategy;
•our ability to anticipate and respond to changing industry trends;
•adverse trends in consumer, business, and government spending;
•our dependence on sole or limited sources for some essential materials and components;
•our ability to successfully value and integrate acquired businesses;
•our products’ satisfaction of applicable quality criteria, specifications and performance standards;
•our ability to maintain our relationships with key customers;
•our ability to maintain our relationships with distributors;
•our ability to maintain consistent purchase volumes under purchase orders;
•our ability to maintain and develop relationships with drug manufacturers and contract manufacturing organizations;
•the impact of new laws, regulations, or other industry standards;
•changes in the interest rate environment that increase interest on our borrowings;
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•adverse impacts from currency exchange rates or currency controls imposed by any government in major areas where we operate or otherwise;
•our ability to implement and improve processing systems and prevent a compromise of our information systems;
•our ability to protect our intellectual property and avoid third-party infringement claims;
•exposure to product liability and other claims in the ordinary course of business;
•our ability to develop new products responsive to the markets we serve;
•the availability of raw materials;
•our ability to avoid negative outcomes related to the use of chemicals;
•our ability to maintain highly skilled employees;
•adverse impact of impairment charges on our goodwill and other intangible assets;
•fluctuations and uncertainties related to doing business outside the United States;
•our ability to obtain and maintain required regulatory clearances or approvals may constrain the commercialization of submitted products;
•our ability to comply with environmental, health and safety laws and regulations, or the impact of any liability or obligation imposed under such laws or regulations;
•our indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt or contractual obligations;
•our ability to generate sufficient cash flows or access sufficient additional capital to meet our debt obligations or to fund our other liquidity needs; and
•our ability to maintain an adequate system of internal control over financial reporting.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this report. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.
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PART I — FINANCIAL INFORMATION
Item 1.    Financial statements
Avantor, Inc. and subsidiaries
Index to unaudited condensed consolidated financial statements
Page
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6
7

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Table of contents
Avantor, Inc. and subsidiaries
Unaudited condensed consolidated balance sheets
(in millions)
March 31, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents $ 172.5  $ 286.6 
Accounts receivable, net of allowances of $25.6 and $26.2
1,201.5  1,113.3 
Inventory 777.7  739.6 
Other current assets 80.3  91.4 
Total current assets 2,232.0  2,230.9 
Property, plant and equipment, net of accumulated depreciation of $400.5 and $388.3
537.4  549.9 
Other intangible assets, net (see note 7)
3,932.2  4,048.8 
Goodwill 2,820.1  2,860.2 
Other assets 217.1  216.7 
Total assets $ 9,738.8  $ 9,906.5 
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt $ 26.5  $ 26.4 
Accounts payable 706.4  678.9 
Employee-related liabilities 140.8  179.3 
Accrued interest 26.8  44.5 
Other current liabilities 340.2  313.6 
Total current liabilities 1,240.7  1,242.7 
Debt, net of current portion 4,606.3  4,867.5 
Deferred income tax liabilities 713.0  723.9 
Other liabilities 372.7  398.1 
Total liabilities 6,932.7  7,232.2 
Commitments and contingencies (see note 8)
Stockholders’ equity:
MCPS including paid-in capital, 20.7 shares outstanding
1,003.7  1,003.7 
Common stock including paid-in capital, 581.8 and 580.1 shares outstanding
1,743.2  1,737.6 
Accumulated earnings (deficit)
75.3  (88.7)
Accumulated other comprehensive (loss) income
(16.1) 21.7 
Total stockholders’ equity 2,806.1  2,674.3 
Total liabilities and stockholders’ equity $ 9,738.8  $ 9,906.5 

See accompanying notes to the unaudited condensed consolidated financial statements.
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Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of operations
(in millions, except per share data)
Three months ended March 31,
2021
2020
Net sales $ 1,785.6  $ 1,519.0 
Cost of sales 1,172.8  1,017.1 
Gross profit 612.8  501.9 
Selling, general and administrative expenses 346.5  343.5 
Operating income
266.3  158.4 
Interest expense (51.5) (94.5)
Loss on extinguishment of debt (5.2) — 
Other income, net
1.8  0.8 
Income before income taxes
211.4  64.7 
Income tax expense
(47.4) (17.7)
Net income
164.0  47.0 
Accumulation of yield on preferred stock (16.1) (16.1)
Net income available to common stockholders
$ 147.9  $ 30.9 
Earnings per share:
Basic $ 0.25  $ 0.05 
Diluted $ 0.25  $ 0.05 
Weighted average shares outstanding:
Basic 581.1  573.7 
Diluted 589.1  581.3 

See accompanying notes to the unaudited condensed consolidated financial statements.
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Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of comprehensive income or loss
(in millions)
Three months ended March 31,
2021
2020
Net income
$ 164.0  $ 47.0 
Other comprehensive loss:
Foreign currency translation — unrealized loss
(33.5) (68.8)
Derivative instruments:
Unrealized (loss) gain
(0.9) 1.6 
Reclassification of loss (gain) into earnings
0.7  (0.1)
Defined benefit plans:
Unrealized gain
0.6  0.4 
Reclassification of gain into earnings
—  (0.1)
Other comprehensive loss before income taxes
(33.1) (67.0)
Income tax effect (4.7) (0.4)
Other comprehensive loss
(37.8) (67.4)
Comprehensive income (loss)
$ 126.2  $ (20.4)

See accompanying notes to the unaudited condensed consolidated financial statements.
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Table of contents
Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of stockholders’ equity
(in millions)
Stockholders’ equity
MCPS including paid-in capital Common stock including paid-in capital Accumulated earnings (deficit) AOCI Total
Shares Amount Shares Amount
Balance at December 31, 2020
20.7  $ 1,003.7  580.1  $ 1,737.6  $ (88.7) $ 21.7  $ 2,674.3 
Comprehensive income (loss)
—  —  —  —  164.0  (37.8) 126.2 
Stock-based compensation expense —  —  —  10.8  —  —  10.8 
Accumulation of yield on preferred stock —  —  —  (16.1) —  —  (16.1)
Stock option exercises and other common stock transactions —  —  1.7  10.9  —  —  10.9 
Balance at March 31, 2021
20.7  $ 1,003.7  581.8  $ 1,743.2  $ 75.3  $ (16.1) $ 2,806.1 
Balance at December 31, 2019
20.7  $ 1,003.7  572.8  $ 1,748.1  $ (203.7) $ (85.9) $ 2,462.2 
Impact of new accounting standard —  —  —  —  (1.6) —  (1.6)
Comprehensive income (loss)
—  —  —  —  47.0  (67.4) (20.4)
Stock-based compensation expense —  —  —  9.2  —  —  9.2 
Accumulation of yield on preferred stock —  —  —  (16.1) —  —  (16.1)
Stock option exercises and other common stock transactions —  —  2.1  6.8  —  —  6.8 
Balance at March 31, 2020
20.7  $ 1,003.7  574.9  $ 1,748.0  $ (158.3) $ (153.3) $ 2,440.1 

See accompanying notes to the unaudited condensed consolidated financial statements.
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Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of cash flows
(in millions)
Three months ended March 31,
2021
2020
Cash flows from operating activities:
Net income
$ 164.0  $ 47.0 
Reconciling adjustments:
Depreciation and amortization 89.0  96.5 
Stock-based compensation expense
11.4  8.4 
Provision for accounts receivable and inventory 7.9  16.6 
Deferred income tax benefit
(5.3) (4.2)
Amortization of deferred financing costs 3.9  6.9 
Loss on extinguishment of debt 5.2  — 
Foreign currency remeasurement loss
2.7  6.7 
Changes in assets and liabilities:
Accounts receivable (106.8) (80.1)
Inventory (54.3) 2.3 
Accounts payable 30.3  67.0 
Accrued interest (17.7) 60.8 
Other assets and liabilities (5.9) 24.5 
Other, net 2.5  0.7 
Net cash provided by operating activities
126.9  253.1 
Cash flows from investing activities:
Capital expenditures (15.1) (12.6)
Other 0.5  0.7 
Net cash used in investing activities
(14.6) (11.9)
Cash flows from financing activities:
Debt repayments (208.6) (63.8)
Payments of dividends on preferred stock (16.1) (16.1)
Proceeds received from exercise of stock options 19.9  6.8 
Shares repurchased to satisfy employee tax obligations for vested stock-based awards (16.2) — 
Net cash used in financing activities
(221.0) (73.1)
Effect of currency rate changes on cash (5.4) (8.5)
Net change in cash and cash equivalents (114.1) 159.6 
Cash, cash equivalents and restricted cash, beginning of period 289.2  189.3 
Cash, cash equivalents and restricted cash, end of period $ 175.1  $ 348.9 

See accompanying notes to the unaudited condensed consolidated financial statements.
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Avantor, Inc. and subsidiaries
Notes to unaudited condensed consolidated financial statements
1.    Nature of operations and presentation of financial statements
We are a global manufacturer and distributor that provides products and services to customers in the biopharmaceutical, healthcare, education & government and advanced technologies & applied materials industries.
Basis of presentation
The accompanying condensed consolidated financial statements have been prepared pursuant to SEC regulations whereby certain information normally included in GAAP financial statements has been condensed or omitted. The financial information presented herein reflects all adjustments (consisting only of normal, recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results for interim periods are not necessarily indicative of the results to be expected for the full year.
We believe that the disclosures included herein are adequate to make the information presented not misleading in any material respect when read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report. Those audited consolidated financial statements include a summary of our significant accounting policies.
Principles of consolidation
All intercompany balances and transactions have been eliminated from the financial statements.
Use of estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported throughout the financial statements. Actual results could differ from those estimates.
Correction of immaterial classification error
We identified and corrected an immaterial classification error between certain product sales in our previously reported net sales by product lines financial table disclosed in our segment financial information footnote included in our previously reported unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2020. The correction of this error allows for a more accurate presentation of net sales of our product lines and had no impact on the Company’s previously reported unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2020 other than those previously mentioned. The following table presents the impact of this correction for the three months ended March 31, 2020.
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(in millions) Three months ended March 31, 2020
Previously reported Adjustment As adjusted
Proprietary materials & consumables $ 533.1  $ (54.6) $ 478.5 
Third party materials & consumables 604.6  45.8  650.4 
Services & specialty procurement 178.0  13.1  191.1 
Equipment & instrumentation 203.3  (4.3) 199.0 
Total $ 1,519.0  $ —  $ 1,519.0 
Correction of previously reported consolidated statement of cash flows
We identified and corrected an immaterial classification error in our previously reported unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2020. The correction of this error within the net cash provided by operating activities resulted in an increase in the line-item referred to as Provision for accounts receivable and inventory and a decrease in the line-item referred to as Inventory by $3.0 million, respectively, from the previously reported amounts of $13.6 million to $16.6 million and $5.3 million to $2.3 million, respectively. The correction of this error had no effect on our previously reported net cash provided by operating activities for the three months ended March 31, 2020, or on any other previously reported amounts in our unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2020 other than those previously mentioned.
Entry into a definitive agreement
On April 12, 2021, the Company entered into a definitive agreement to acquire privately held Ritter GmbH and its affiliates in an all-cash transaction with an upfront equity purchase price of approximately €890.0 million subject to final adjustments at closing and additional payments based on achieving future business performance milestones. The acquisition is expected to close in 2021 and is subject to customary conditions, including receipt of applicable regulatory approvals.
2.    New accounting standards
New tax standard
On January 1, 2021, we implemented the FASB’s new standard to simplify the accounting for income taxes, which was issued in December 2019. The provisions of this new standard did not result in our having to record an impact upon adoption.
Other
There were no other new accounting standards that we expect to have a material impact to our financial position or results of operations upon adoption.
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3.    Earnings or loss per share
The following table presents the reconciliation of basic and diluted earnings per share for the three months ended March 31, 2021:
(in millions, except per share data)
Three months ended March 31, 2021
Earnings /(loss) (numerator) Weighted average shares outstanding (denominator) Earnings / (loss) per share
Basic $ 147.9  581.1  $ 0.25 
Dilutive effect of stock-based awards —  8.0 
Diluted $ 147.9  589.1  $ 0.25 
For the three months ended March 31, 2021, diluted earnings per share included accumulated yield on preferred stock of $16.1 million and excluded 62.9 million of common stock equivalents under the MCPS because they were anti-dilutive to the calculation.
The following table presents the reconciliation of basic and diluted earnings per share for the three months ended March 31, 2020:
(in millions, except per share data)
Three months ended March 31, 2020
Earnings /(loss) (numerator) Weighted average shares outstanding (denominator) Earnings / (loss) per share
Basic $ 30.9  573.7  $ 0.05 
Dilutive effect of stock-based awards —  7.6 
Diluted $ 30.9  581.3  $ 0.05 
For the three months ended March 31, 2020, diluted earnings per share included accumulated yield on preferred stock of $16.1 million and excluded 73.9 million of common stock equivalents under the MCPS because they were anti-dilutive to the calculation.
4.    Segment financial information
We report three geographic segments based on customer location: Americas, Europe and AMEA. Each segment manufactures and distributes solutions for the biopharmaceutical, healthcare, education & government and advanced technologies & applied materials industries. Corporate costs are managed on a standalone basis and not allocated to segments.
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The following table presents information by reportable segment:
(in millions)
Three months ended March 31,
2021
2020
Net sales:
Americas $ 1,035.2  $ 899.1 
Europe 650.4  544.0 
AMEA 100.0  75.9 
Total $ 1,785.6  $ 1,519.0 
Adjusted EBITDA:
Americas $ 252.0  $ 190.0 
Europe 131.1  91.7 
AMEA 22.6  13.4 
Corporate (42.6) (32.3)
Total $ 363.1  $ 262.8 
The amounts above exclude inter-segment activity because it is not material. All of the net sales for each segment are from external customers.
The following table presents the reconciliation of Adjusted EBITDA from net income or loss, the nearest measurement under GAAP:
(in millions)
Three months ended March 31,
2021
2020
Net income
$ 164.0  $ 47.0 
Interest expense 51.5  94.5 
Income tax expense
47.4  17.7 
Depreciation and amortization 89.0  96.5 
Loss on extinguishment of debt 5.2  — 
Net foreign currency loss from financing activities
0.8  1.6 
Other stock-based compensation expense (benefit) 0.6  (1.1)
Restructuring and severance charges 1.6  1.2 
Transaction related expenses and other 3.0  1.8 
Integration and planning expenses —  3.6 
Adjusted EBITDA $ 363.1  $ 262.8 
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The following table presents net sales by product line:
(in millions)
Three months ended March 31,
2021
2020
(1)
Proprietary materials & consumables $ 565.2  $ 478.5 
Third party materials & consumables 758.4  650.4 
Services & specialty procurement 219.8  191.1 
Equipment & instrumentation 242.2  199.0 
Total $ 1,785.6  $ 1,519.0 
━━━━━━━━━
1.As adjusted, see note 1.
5.    Supplemental disclosures of cash flow information
The following tables present supplemental disclosures of cash flow information:
(in millions)
March 31, 2021
December 31, 2020
Cash and cash equivalents $ 172.5  $ 286.6 
Restricted cash classified as other assets 2.6  2.6 
Total $ 175.1  $ 289.2 

(in millions)
Three months ended March 31,
2021
2020
Cash flows from operating activities:
Cash paid for income taxes, net $ 12.6  $ 12.2 
Cash paid for interest 64.0  27.2 
Cash paid under operating leases 10.7  10.0 
Cash paid under finance leases 1.3  1.3 
Cash flows from financing activities:
Cash paid under finance leases 1.1  1.1 

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6.    Inventory
The following table presents the components of inventory:
(in millions)
March 31, 2021
December 31, 2020
Merchandise inventory $ 480.4  $ 463.0 
Finished goods 112.6  115.9 
Raw materials 142.8  123.2 
Work in process 41.9  37.5 
Total $ 777.7  $ 739.6 

7.    Other intangible assets
The following table presents the components of other intangible assets:
(in millions)
March 31, 2021
December 31, 2020
Gross value Accumulated amortization Carrying value Gross value Accumulated amortization Carrying value
Customer relationships $ 4,644.9  $ 944.2  $ 3,700.7  $ 4,701.6  $ 894.9  $ 3,806.7 
VWR trade name 271.5  184.8  86.7  275.7  184.3  91.4 
Other 184.6  132.1  52.5  185.4  127.0  58.4 
Total finite-lived $ 5,101.0  $ 1,261.1  3,839.9  $ 5,162.7  $ 1,206.2  3,956.5 
Indefinite-lived 92.3  92.3 
Total $ 3,932.2  $ 4,048.8 

8.    Commitments and contingencies
Our business is subject to contingencies related to compliance with environmental laws and regulations, the manufacture and sale of products and litigation. The ultimate resolution of contingencies is subject to significant uncertainty, and it is reasonably possible that we will experience adverse outcomes related to these matters.
Environmental laws and regulations
Our environmental liabilities are subject to changing governmental policy and regulations, discovery of unknown conditions, judicial proceedings, method and extent of remediation, existence of other potentially responsible parties and future changes in technology. We believe that known and unknown environmental matters, if not resolved favorably, could have a material effect on our financial position, liquidity and profitability.
Mallinckrodt indemnification
In 2010, New Mountain Capital acquired us from Covidien plc in accordance with a stock purchase agreement dated May 25, 2010. At that time, we were organized as Mallinckrodt Baker, Inc. or MBI. Pursuant to the terms of that agreement, we are entitled to various levels of indemnification with respect
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to environmental liabilities involving the former MBI operations. In 2013, in connection with the Covidien plc divestiture of Mallinckrodt Group S.a.r.l and Mallinckrodt LLC, together “Mallinckrodt,” and by a second amendment to the stock purchase agreement dated June 6, 2013, but effective upon the consummation of the divestiture, Covidien plc assigned its obligations as described herein to Mallinckrodt, and Mallinckrodt assumed those obligations from Covidien plc. As a result of the stock purchase agreement and assignment, Mallinckrodt is contractually obligated to indemnify and defend us for all off-site environmental liabilities (for example, Superfund or CERCLA liabilities) arising from the pre-closing disposal of chemicals or wastes by former MBI operations.
In connection with environmental liabilities arising from pre-closing noncompliance with environmental laws, Mallinckrodt is contractually obligated to reimburse us for a percentage of the total liability, with such reimbursements made through disbursements from a $30.0 million environmental escrow established at the time of the closing. Specifically, Mallinckrodt will be responsible for reimbursement of 80% of the total costs up to $40.0 million of such environmental liabilities. Mallinckrodt will then be responsible for reimbursement of 50% of the next $40.0 million of such environmental liabilities. If such environmental liabilities exceed $80.0 million in the aggregate, Mallinckrodt will be responsible for reimbursement of 100% of such liabilities up to the next $30.0 million in the aggregate. Currently, reimbursements are 80% of the amounts spent by us, with reimbursements and settlements to date exceeding $12.0 million. In addition, in connection with operation and maintenance activities required pursuant to administrative consent orders and subsequently issued remedial action permits involving our Phillipsburg, New Jersey facility, amounts in excess of a small annual threshold are also subject to reimbursement, currently at the 80% level.
Other noteworthy matters
The New Jersey Department of Environmental Protection has ordered us to remediate groundwater conditions near our plant in Phillipsburg, New Jersey. This matter is covered by the indemnification arrangement previously described. At March 31, 2021, our accrued obligation under this order is $3.5 million, which is calculated based on expected cash payments discounted at rates ranging from 0.0% in 2021 to 2.4% in 2045. The undiscounted amount of that obligation is $4.3 million.
In 2016, we assessed the environmental condition of our chemical manufacturing site in Gliwice, Poland. Our assessment revealed specific types of soil and groundwater contamination throughout the site. We are also monitoring the condition of a closed landfill on that site. These matters are not covered by our indemnification arrangement because they relate to an operation we subsequently acquired. At March 31, 2021, our balance sheet includes a liability of $3.2 million for remediation and monitoring costs. That liability is estimated primarily on expected remediation payments discounted through 2023 and is not materially different than its undiscounted amount.
Manufacture and sale of products
Our business involves risk of product liability, patent infringement and other claims in the ordinary course of business arising from the products that we produce ourselves or obtain from our suppliers, as well as from the services we provide. Our exposure to such claims may increase to the extent that we expand our manufacturing operations or service offerings.
We maintain insurance policies to protect us against these risks, including product liability insurance. In many cases the suppliers of products we distribute have indemnified us against such claims. Our insurance coverage or indemnification agreements with suppliers may not be adequate in all pending or
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any future cases brought against us. Furthermore, our ability to recover under any insurance or indemnification arrangements is subject to the financial viability of our insurers, our suppliers and our suppliers’ insurers, as well as legal enforcement under the local laws governing the arrangements.
We have entered into indemnification agreements with customers of our self-manufactured products to protect them from liabilities and losses arising from our negligence, willful misconduct or sale of defective products. To date, we have not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions.
Litigation
At March 31, 2021, there was no outstanding litigation that we believe would result in material losses if decided against us, and we do not believe that there are any unasserted matters that are reasonably possible to result in a material loss.
9.    Debt
The following table presents information about our debt:
(dollars in millions)
March 31, 2021
December 31, 2020
Interest terms Rate Amount
Receivables facility
LIBOR plus 0.90%
1.01%
$ —  $ — 
Senior secured credit facilities:
Euro term loans
EURIBOR plus 2.50%
2.50%
254.7  344.8 
U.S. dollar term loans
LIBOR plus 2.25%
3.25%
420.7  546.7 
U.S. dollar term loans
LIBOR plus 2.25%
3.25%
1,172.1  1,175.0 
2.625% secured notes fixed rate
2.625%
763.2  795.0 
3.875% unsecured notes fixed rate
3.875%
469.6  489.2 
4.625 % unsecured notes fixed rate
4.625%
1,550.0  1,550.0 
Finance lease liabilities 71.7  71.5 
Total debt, gross 4,702.0  4,972.2 
Less: unamortized deferred financing costs (69.2) (78.3)
Total debt $ 4,632.8  $ 4,893.9 
Classification on balance sheets:
Current portion of debt $ 26.5  $ 26.4 
Debt, net of current portion 4,606.3  4,867.5 
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Credit facilities
The following table presents availability under our credit facilities:
(in millions)
March 31, 2021
Receivables facility Revolving credit facility Total
Capacity $ 300.0  $ 515.0  $ 815.0 
Undrawn letters of credit outstanding (9.9) (1.6) (11.5)
Outstanding borrowings —  —  — 
Unused availability $ 290.1  $ 513.4  $ 803.5 
Maximum availability $ 300.0  $ 515.0  $ 815.0 
Capacity under the receivables facility depends upon maintaining a sufficient borrowing base of eligible accounts receivable. At March 31, 2021, $514.3 million of accounts receivable were available as collateral under the facility.
Senior secured credit facilities
On March 31, 2021, we made prepayments of $124.5 million on our U.S. dollar term loans and $77.6 million on our Euro term loans. In connection with these prepayments, we expensed $5.2 million of previously unamortized deferred financing costs as a loss on extinguishment of debt.
Debt covenants
Our debt agreements include representations and covenants that we consider usual and customary, and our receivables facility and senior secured credit facilities include a financial covenant that becomes applicable for periods in which we have drawn more than 35% of our revolving credit facility under the senior secured credit facilities. When applicable, we may not have combined borrowings on our senior secured credit facilities and secured notes in excess of a pro forma net leverage ratio, as defined. As we had not drawn more than 35% of our revolving credit facility in this period, this covenant was not applicable at March 31, 2021.
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10.    Accumulated other comprehensive income or loss
The following table presents changes in the components of AOCI:
(in millions)
Foreign currency translation Derivative instruments Defined benefit plans Total
Balance at December 31, 2020
$ 51.8  $ (1.0) $ (29.1) $ 21.7 
Unrealized (loss) gain
(33.5) (0.9) 0.6  (33.8)
Reclassification of loss into earnings
—  0.7  —  0.7 
Income tax effect (4.7) —  —  (4.7)
Balance at March 31, 2021
$ 13.6  $ (1.2) $ (28.5) $ (16.1)
Balance at December 31, 2019
$ (62.3) $ (0.5) $ (23.1) $ (85.9)
Unrealized (loss) gain
(68.8) 1.6  0.4  (66.8)
Reclassification of gain into earnings
—  (0.1) (0.1) (0.2)
Income tax effect —  (0.4) —  (0.4)
Balance at March 31, 2020
$ (131.1) $ 0.6  $ (22.8) $ (153.3)
The reclassifications and income tax effects shown above were immaterial to the financial statements. The reclassifications were made to either cost of sales or SG&A expenses depending upon the nature of the underlying transaction. The income tax effects in the three months ended March 31, 2021 on foreign currency translation were due to our net investment hedge discussed in note 14.
11.    Stock-based compensation
The following table presents the components of stock-based compensation expense:
(in millions)
Classification
Three months ended March 31,
2021
2020
Stock options Equity $ 4.6  $ 3.9 
RSUs Equity 5.7  4.9 
Optionholder awards Liability —  0.3 
Other Both 1.1  (0.7)
Total $ 11.4  $ 8.4 
Balance sheet classification:
Equity $ 10.8  $ 9.2 
Liability 0.6  (0.8)
At March 31, 2021, unvested awards under our plans have remaining stock-based compensation expense of $114.8 million to be recognized over a weighted average period of 1.9 years.
At March 31, 2021, 9.8 million shares were available for future issuance under the 2019 Plan.
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Stock options
The following table presents information about outstanding stock options:
(options and intrinsic value in millions)
Number of options Weighted average exercise price per option Aggregate intrinsic value Weighted average remaining term
Balance at December 31, 2020
20.0  $ 18.80 
Granted 1.5  27.70 
Exercised (1.0) 21.40 
Forfeited (0.1) 15.88 
Balance at March 31, 2021
20.4  19.32  $ 197.0  7.5 years
Expected to vest 9.0  19.80  83.2  8.6 years
Vested 11.4  18.93  113.7  6.6 years
During the three months ended March 31, 2021, we granted stock options that have a contractual life of ten years and will vest annually over four years, subject to the recipient continuously providing service to us through each such date.
RSUs
The following table presents information about unvested RSUs:
(awards in millions)
Number of awards Weighted average grant date fair value per award
Balance at December 31, 2020
4.9  $ 15.31 
Granted 1.1  29.17 
Vested (0.7) 15.38 
Forfeited —  18.51 
Balance at March 31, 2021
5.3  18.73 
During the three months ended March 31, 2021, we granted RSUs that will vest annually over four years, subject to the recipient continuously providing service to us through each such date. Additionally, we granted certain employees RSUs that cliff vest over three years and contain performance and market conditions that impact the number of shares that will ultimately vest, subject to the recipient continuously providing service to us through each such date. The expense recorded related to the RSUs with performance and market conditions was not material.
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12.    Other income or expense, net
The following table presents the components of other income or expense, net:
(in millions)
Three months ended March 31,
2021
2020
Net foreign currency loss from financing activities
$ (0.8) $ (1.6)
Income related to defined benefit plans 2.4  2.3 
Other 0.2  0.1 
Other income, net
$ 1.8  $ 0.8 

13.    Income taxes
The following table presents the relationship between income tax expense or benefit and income or loss before income taxes:
(in millions)
Three months ended March 31,
2021
2020
Income before income taxes
$ 211.4  $ 64.7 
Income tax expense
(47.4) (17.7)
Effective income tax rate 22.4  % 27.4  %
Income tax expense or benefit in the quarter is based upon the estimated income or loss for the full year. The composition of the income or loss in different countries and adjustments, if any, in the applicable quarterly periods influences our expense or benefit.
The relationship between pre-tax income or loss and income tax expense or benefit is greatly affected by the impact of losses for which we cannot claim a tax benefit, non-deductible expenses, and other items that increase tax expense without a relationship to income, such as withholding taxes and changes with respect to uncertain tax positions. The decrease in the effective tax rate for the three months ended March 31, 2021 when compared to the three months ended March 31, 2020, is primarily related to the change in geographical distribution of our pre-tax earnings along with an increase in the tax benefit for stock-based compensation exercises recorded discretely during the period.
14.    Derivative and hedging activities
We engage in hedging activities to reduce our exposure to foreign currency exchange rates. Our hedging activities are designed to manage specific risks according to our strategies, as summarized below, which may change from time to time. Our hedging activities consist of the following:
•Economic hedges — We are exposed to changes in foreign currency exchange rates on certain of our euro-denominated term loans and notes that move inversely from our portfolio of euro-denominated intercompany loans. The currency effects for these non-derivative instruments are recorded through earnings in the period of change and substantially offset one another;
•Other hedging activities — Certain of our subsidiaries hedge short-term foreign currency denominated business transactions, external debt and intercompany financing transactions using
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foreign currency forward contracts. These activities were not material to our consolidated financial statements; and
•Net investment hedge — We have designated €400.0 million of our 3.875% senior unsecured notes as a hedge of our net investment in certain European operations to manage our exposure to currency and exchange rate movements from these operations.
Net Investment Hedge
We designated all of our outstanding €400.0 million 3.875% senior unsecured notes, issued on July 17, 2020, and maturing on July 15, 2028, as a hedge of our net investment in certain of our European operations. For instruments that are designated and qualify as net investment hedges, the foreign currency transactional gains or losses are reported as a component of AOCI. The gains or losses would be reclassified into earnings upon a liquidation event or deconsolidation of a hedged foreign subsidiary.
Net investment hedge effectiveness is assessed based upon the change in the spot rate of the foreign currency denominated debt. The critical terms of the foreign currency notes match the portion of the net investments designated as being hedged. At March 31, 2021, the net investment hedge was equal to the designated portion of the European operations and were considered to be perfectly effective.
Non-derivative financial instruments which are designated as hedging instruments:
The accumulated loss related to the foreign currency denominated debt designated as net investment hedges classified in the foreign currency translation adjustment component of AOCI was $18.0 million and $37.6 million as of March 31, 2021 and December 31, 2020, respectively.
The amount of gain related to the foreign currency denominated debt designated as net investment hedges classified in the foreign currency translation adjustment component of other comprehensive income is presented below:
(in millions)
Three months ended March 31,
2021 2020
Net investment hedges $ 19.6  $ — 

15.    Financial instruments and fair value measurements
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and debt.
Assets and liabilities for which fair value is only disclosed
The carrying amount of cash and cash equivalents was the same as its fair value and is a Level 1 measurement. The carrying amounts for trade accounts receivable and accounts payable approximated fair value due to their short-term nature and are Level 2 measurements.
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The following table presents the carrying values, which exclude unamortized deferred financing costs, and the fair values of debt instruments:
(in millions)
March 31, 2021
December 31, 2020
Carrying value Fair value Carrying value Fair value
Receivables facility $ —  $ —  $ —  $ — 
Senior secured credit facilities:
Euro term loans 254.7  255.7  344.8  346.5 
U.S. dollar term loans 420.7  421.0  546.7  548.1 
U.S. dollar term loans 1,172.1  1,174.3  1,175.0  1,178.7 
2.625% secured notes 763.2  783.1  795.0  815.7 
3.875% unsecured notes 469.6  496.7  489.2  515.0 
4.625 % unsecured notes 1,550.0  1,617.2  1,550.0  1,648.7 
Finance lease liabilities 71.7  71.7  71.5  71.5 
Total $ 4,702.0  $ 4,819.7  $ 4,972.2  $ 5,124.2 
The fair values of debt instruments are based on standard pricing models that take into account the present value of future cash flows, and in some cases private trading data, which are level 2 measurements.
Item 2.    Management’s discussion and analysis of financial condition and results of operations
In addition to historical financial information, this discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our results may differ materially from those contained in or implied by any forward-looking statements. You should carefully read “Cautionary factors regarding forward-looking statements” for additional information.
Basis of presentation
This discussion should be read in conjunction with the accompanying consolidated financial statements and notes. Pursuant to SEC rules for reports covering interim periods, we have prepared this discussion and analysis to enable you to assess material changes in our financial condition and results of operations since December 31, 2020, the date of our Annual Report. Therefore, we encourage you to read this discussion and analysis in conjunction with the Annual Report.
Overview
We are a leading global provider of mission critical products and services to customers in the biopharmaceutical, healthcare, education & government and advanced technologies & applied materials industries. We have global operations and an extensive product portfolio. We strive to enable customer success through innovation, cGMP manufacturing and comprehensive service offerings. The depth and breadth of our portfolio provides our customers a comprehensive range of products and services and allows us to create customized and integrated solutions for our customers.
In the first quarter of 2021, we recorded net sales of $1,785.6 million, net income of $164.0 million and Adjusted EBITDA of $363.1 million. Net sales increased by 17.5%, which included 13.5% organic growth compared to the same period in 2020. See “Reconciliations of non-GAAP measures” for a
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reconciliation of net income (loss) to Adjusted EBITDA and “Results of operations” for a reconciliation of net sales growth to organic net sales growth.
Factors and current trends affecting our business and results of operations
The following updates the factors and current trends disclosed in the Annual Report. These updates could affect our performance and financial condition in future periods.
Our results continue to be impacted by the ongoing global coronavirus outbreak
The COVID-19 pandemic had an overall favorable impact on the first quarter results of our three regions, as described further in the “Results of operations” section below.
For a discussion of the potential impact of the COVID-19 pandemic and associated economic disruptions, and the actual operational and financial impacts that we experienced through December 31, 2020, see “Part II—Item 7—Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report. For additional discussion of the potential impact of the COVID-19 pandemic and associated economic disruptions to the Company, see “The COVID-19 pandemic has adversely impacted, and continues to pose risks to, our business, operating results, cash flows and/or financial condition, the nature and extent of which could be material.” included in “Part I—Item 1A—Risk Factors” in the Annual Report.
Key indicators of performance and financial condition
To evaluate our performance, we monitor a number of key indicators including certain non-GAAP financial measurements that we believe are useful to investors, creditors and others in assessing our performance. These measurements should not be considered in isolation or as a substitute for reported GAAP results because they may include or exclude certain items as compared to similar GAAP-based measurements, and such measurements may not be comparable to similarly-titled measurements reported by other companies. Rather, these measurements should be considered as an additional way of viewing aspects of our operations that provide a more complete understanding of our business.
The key indicators that we monitor are as follows:
•Net sales, gross margin, operating income and net income or loss. These measures are discussed in the section entitled “Results of operations;”
•Organic net sales growth, which is a non-GAAP measure discussed in the section entitled “Results of operations.” Organic net sales growth eliminates from our reported net sales the impacts of earnings from any acquired or disposed businesses and changes in foreign currency exchange rates. We believe that this measurement is useful to investors as a way to measure and evaluate our underlying commercial operating performance consistently across our segments and the periods presented. This measurement is used by our management for the same reason. Reconciliations to the change in reported net sales, the most directly comparable GAAP financial measure, are included in the section entitled “Results of operations;”
•Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP measures discussed in the section entitled “Results of operations.” Adjusted EBITDA is used by investors to measure and evaluate our operating performance exclusive of interest expense, income tax expense, depreciation, amortization and certain other adjustments. Adjusted EBITDA margin is Adjusted
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EBITDA divided by net sales as determined under GAAP. We believe that these measurements are useful to investors as a way to analyze the underlying trends in our core business consistently across the periods presented. This measurement is used by our management for the same reason. A reconciliation of net income or loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA is included in the section entitled “Reconciliations of non-GAAP measures;”
•Cash flows from operating activities, which we discuss in the section entitled “Liquidity and capital resources—historical cash flows.”
•Free cash flow, which is equal to our cash flow from operating activities, less capital expenditures. We believe that this measurement is useful to investors as it provides a view on the Company’s ability to generate cash for use in financing or investment activities. This measurement is used by management for the same reason.
Results of operations
We present results of operations in the same way that we manage our business, evaluate our performance and allocate our resources. We also provide discussion of net sales and Adjusted EBITDA by geographic segment based on customer location: Americas, Europe and AMEA. Corporate costs are managed on a standalone basis and not allocated to segments.
Executive summary
(dollars in millions)
Three months ended March 31, Change
2021 2020
Net sales $ 1,785.6  $ 1,519.0  $ 266.6 
Gross margin 34.3  % 33.0  % 130 bps
Operating income $ 266.3  $ 158.4  $ 107.9 
Net income 164.0  47.0  117.0 
Adjusted EBITDA 363.1  262.8  100.3 
Adjusted EBITDA margin 20.3  % 17.3  % 300 bps
First quarter revenue growth reflects strong double-digit growth in the biopharma, healthcare and education & government end markets. Our core business continues to show a strong recovery as the global economy reopens following COVID-19 lockdowns. This growth was augmented by our COVID-19 related sales of PPE and solutions to support diagnostic testing and vaccine production. Double-digit growth of our proprietary materials and consumables product group, commercial excellence, productivity and cost containment contributed to gross margin and Adjusted EBITDA margin expansion.
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Net sales
Three months ended
(in millions)
Three months ended March 31,
Reconciliation of net sales growth to organic net sales growth
Net sales growth Foreign currency impact Organic net sales growth
2021
2020
Americas $ 1,035.2  $ 899.1  $ 136.1  $ 4.9  $ 131.2 
Europe 650.4  544.0  106.4  51.1  55.3 
AMEA 100.0  75.9  24.1  3.6  20.5 
Total $ 1,785.6  $ 1,519.0  $ 266.6  $ 59.6  $ 207.0 
Net sales increased $266.6 million or 17.5%, which included $59.6 million or 4.0% of favorable foreign currency impact. Organic growth in net sales was $207.0 million or 13.5% and was due to both growth in our core business as well as COVID-19 related sales.
In the Americas, net sales increased $136.1 million or 15.1%, which included $4.9 million or 0.5% of favorable foreign currency impact. Organic growth in net sales was $131.2 million or 14.6%. Additional information by end market is as follows:
•Biopharma — Sales grew double-digits primarily driven by double-digit growth in biopharma production from our COVID-19 vaccine-related offerings. Improving dynamics in research & development laboratories led to strong growth in the core business.
•Healthcare — Sales increased double-digits driven by demand for chemicals and consumables in our medical/clinical reference lab business, COVID-19 diagnostic testing offerings and increased demand for elective procedures.
•Education and government — Sales increased double-digits primarily from government demand of COVID-19 diagnostic testing offerings. Education grew high single-digits primarily driven by increased demand in university research labs.
•Advanced technologies & applied materials — Sales declined low single-digits as we continue to see general softness in our industrial sector partially offset by demand for electronic materials.
In Europe, net sales increased $106.4 million or 19.5%, which included $51.1 million or 9.4% of favorable foreign currency impact. Organic growth in net sales was $55.3 million or 10.1%. Additional information by end market is as follows:
•Biopharma — Sales grew in the double-digits driven by proprietary biopharma production chemicals, single-use solutions, consumables and PPE to support our core business, as well as solutions to support COVID-19 detection and testing.
•Healthcare — Sales grew in the double-digits due to sales of COVID-19 testing content and an increased demand for elective procedures.
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•Education & government — Sales grew in the double-digits driven by our government customers’ demand for COVID-19 testing offerings and mid single-digit growth in educational research labs.
•Advanced technologies & applied materials — Sales declined low single-digits due to continued general softness in the end market.
In AMEA, net sales increased $24.1 million or 32.0%, which included $3.6 million or 4.8% of favorable foreign currency impact. Organic growth in net sales was $20.5 million or 27.2%. Additional information by end market is as follows:
•Biopharma — Sales grew in the double-digits driven by strong growth in proprietary biopharma production chemicals and single-use offerings.
•Advanced technologies & applied materials — Sales grew mid single-digits primarily driven by growth from our core diagnostics business in India.
Gross margin
Three months ended March 31,
Change
2021
2020
Gross margin 34.3  % 33.0  % 130 bps
Three months ended
Gross margin increased 130 basis points resulting primarily from 150 basis points of favorable product mix due to strong sales of our proprietary product offerings and commercial excellence. This was offset by 20 basis points of lower vendor rebates and inventory manufacturing variances.
Operating income
(in millions)
Three months ended March 31,
Change
2021
2020
Gross profit $ 612.8  $ 501.9  $ 110.9 
Operating expenses 346.5  343.5  3.0 
Operating income
$ 266.3  $ 158.4  $ 107.9 
Three months ended
Gross profit increased $110.9 million due to the reasons described above. The slight increase in operating expenses primarily relates to foreign currency exchange losses and inflation offset by continued cost containment due to COVID-19 related measures such as discretionary cost controls around travel and expenses.
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Net income or loss
(in millions)
Three months ended March 31,
Change
2021
2020
Operating income
$ 266.3  $ 158.4  $ 107.9 
Interest expense (51.5) (94.5) 43.0 
Loss on extinguishment of debt (5.2) —  (5.2)
Other income, net
1.8  0.8  1.0 
Income tax expense
(47.4) (17.7) (29.7)
Net income
$ 164.0  $ 47.0  $ 117.0 
Three months ended
Net income for the three months ended March 31, 2021 increased by $117.0 million primarily driven by the operating income growth detailed above and lower interest expense from the repricings and refinancings of our debt for more favorable interest rates in the second half of 2020 and lower debt. This was partially offset by higher income tax expense as a result of our higher income and the non-cash loss on extinguishment of debt.
Adjusted EBITDA and Adjusted EBITDA margin
For a reconciliation of Adjusted EBITDA to Net income or loss, the most directly comparable measure under GAAP, see “Reconciliations of non-GAAP financial measures.”
(in millions)
Three months ended March 31,
Change
2021 2020
Adjusted EBITDA:
Americas $ 252.0  $ 190.0  $ 62.0 
Europe 131.1  91.7  39.4 
AMEA 22.6  13.4  9.2 
Corporate (42.6) (32.3) (10.3)
Total $ 363.1  $ 262.8  $ 100.3 
Adjusted EBITDA margin 20.3  % 17.3  % 3.0  %
Three months ended
Adjusted EBITDA increased $100.3 million or 38.2%, which included a favorable foreign currency translation impact of $10.9 million or 4.1%. The reasons for the remaining growth of $89.4 million or 34.1%, are discussed below:
In the Americas, Adjusted EBITDA grew $62.0 million or 32.6%, or 32.1% when adjusted for favorable foreign currency translation impact. Gross margin expansion from commercial excellence, favorable volume and product mix along with continued savings from SG&A cost containment initiatives in response to COVID-19 drove significant Adjusted EBITDA rate expansion.
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In Europe, Adjusted EBITDA grew $39.4 million or 42.9%, or 33.2% when adjusted for favorable foreign currency translation impact, due to strong volume and commercial excellence along with savings from SG&A cost containment initiatives in response to COVID-19.
In AMEA, Adjusted EBITDA grew $9.2 million or 68.7%, or 61.5% when adjusted for unfavorable foreign currency translation. In addition to the favorable sales volume, lower inventory provisions and lower bad debt expense contributed to Adjusted EBITDA growth.
In Corporate, Adjusted EBITDA declined $10.3 million or 31.8% reflecting increased stock-based compensation expense and higher incentive compensation expense as a result of our strong first quarter performance.
Reconciliations of non-GAAP financial measures
The following table presents the reconciliation of net income or loss to Adjusted EBITDA:
(in millions)
Three months ended March 31,
2021
2020
Net income
$ 164.0  $ 47.0 
Interest expense 51.5  94.5 
Income tax expense
47.4  17.7 
Depreciation and amortization 89.0  96.5 
Loss on extinguishment of debt 5.2  — 
Net foreign currency loss from financing activities
0.8  1.6 
Other stock-based compensation expense (benefit) 0.6  (1.1)
Restructuring and severance charges1
1.6  1.2 
Transaction related expenses and other2
3.0  1.8 
Integration and planning expenses3
—  3.6 
Adjusted EBITDA $ 363.1  $ 262.8 

━━━━━━━━━
1.Reflects the incremental expenses incurred in the period related to initiatives to increase profitability and productivity. Typical costs included in this caption are employee severance, site-related exit costs, and contract termination costs.
2.Reflects the costs incurred with external advisors and professional services related to potential and consummated acquisitions and divestitures.
3.Reflects the non-recurring direct costs incurred to integrate acquired businesses. These costs are captured over a defined integration period, primarily for significant acquisitions.
Liquidity and capital resources
We fund short-term cash requirements primarily from operating cash flows. Most of our long-term financing is from indebtedness. We generated $126.9 million of cash from operating activities and ended the quarter with $172.5 million of cash and cash equivalents and our availability under credit facilities
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was $803.5 million. We have no debt repayments due in the next twelve months other than required term loan payments of $22.7 million.
Liquidity
The following table presents our primary sources of liquidity:
(in millions)
March 31, 2021
Receivables facility Revolving credit facility Total
Unused availability under credit facilities:
Capacity $ 300.0  $ 515.0  $ 815.0 
Undrawn letters of credit outstanding (9.9) (1.6) (11.5)
Outstanding borrowings —  —  — 
Unused availability $ 290.1  $ 513.4  $ 803.5 
Cash and cash equivalents 172.5 
Total liquidity $ 976.0 
We fund short-term cash requirements primarily from operating cash flows. Some of our credit line availability depends upon maintaining a sufficient borrowing base of eligible accounts receivable. We believe that we have sufficient capital resources to meet our liquidity needs. As of March 31, 2021, we were in compliance with our debt covenants.
At March 31, 2021, $158.7 million or 92.0% of our $172.5 million in cash and cash equivalents was held by our non-U.S. subsidiaries and may be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply.
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Historical cash flows
The following table presents a summary of cash provided by (used in) various activities:
(in millions)
Three months ended March 31,
Change
2021 2020
Operating activities:
Net income $ 164.0  $ 47.0  117.0 
Non-cash items 114.8  130.9  (16.1)
Working capital changes1,2
(130.5) (4.3) (126.2)
All other (21.4) 79.5  (100.9)
Total $ 126.9  $ 253.1  $ (126.2)
Investing activities $ (14.6) $ (11.9) $ (2.7)
Financing activities (221.0) (73.1) (147.9)
Capital expenditures (15.1) (12.6) (2.5)
━━━━━━━━━
1.The amount previously reported as working capital changes for three months ended March 31, 2020 has been revised in the above table to give effect to the correction of an immaterial classification error disclosed in note 1 to our unaudited interim financial statements beginning on page F-1 of this report.
2.Includes changes to our accounts receivable, inventory, contract assets and accounts payable.
Cash flows from operating activities provided $126.2 million less cash in 2021 primarily due to increased working capital requirements, payouts under our incentive compensation plan and the timing of interest paid as a result of debt refinancings, partially offset by a significant increase in net income.
Investing activities used $2.7 million more cash in 2021, reflecting an increase in capital spending.
Financing activities used $147.9 million more cash in 2021 primarily due to optional prepayments that we made on our term loans.
Free cash flow
(in millions)
Three months ended March 31, Change
2021 2020
Net cash provided by operating activities $ 126.9  $ 253.1  $ (126.2)
Capital expenditures (15.1) (12.6) (2.5)
Free cash flow $ 111.8  $ 240.5  $ (128.7)
Free cash flow was $128.7 million lower in 2021 due to the changes in cash flows from operating activities noted above as well as an increase in capital spending.
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Indebtedness
For information about our indebtedness, refer to the section entitled “Liquidity” and note 9 to our unaudited condensed consolidated financial statements included in Part I, Item 1 — “Financial statements.”
New accounting standards
For information about new accounting standards, see note 2 to our unaudited condensed consolidated financial statements included in Part I, Item 1 — “Financial statements.”
Item 3.    Quantitative and qualitative disclosures about market risk
There have been no significant changes to the disclosures about market risk included in our Annual Report.
Item 4.    Controls and procedures
Management’s evaluation of disclosure controls and procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2021, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in internal control over financial reporting
There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the fiscal quarter ended March 31, 2021 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
PART II — OTHER INFORMATION
Item 1.    Legal proceedings
In April 2018 the EPA notified us of potential liabilities under the Toxic Substances Control Act and the Emergency Planning and Community Right to Know Act that were identified in March 2017 and June 2017 inspections of our Phillipsburg, New Jersey facility. The alleged violations relate to our failure to timely file reports regarding the Phillipsburg facility. We have also become aware of additional potential liabilities under the Toxic Substances Control Act relating to failure to timely file reports regarding the Paris, Kentucky facility, and relating to export shipments of elemental mercury, which we have voluntarily disclosed to the EPA. We have taken steps to correct these errors and have filed amended reports. Through our cooperation with the EPA, we believe that we will settle the matter for less than $1 million.
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For additional information regarding legal proceedings and matters, see note 8 to our unaudited condensed consolidated financial statements included in Part I, Item 1 — “Financial Statements,” which information is incorporated into this item by reference.
Item 1A.    Risk factors
For information regarding factors that could affect the Company's results of operations, financial condition and liquidity, see the risk factors discussed in Part I, Item 1A “Risk Factors” in our Annual Report. There have been no material changes to the risk factors disclosed in Part I—Item 1A of the Annual Report.
Item 2.    Unregistered sales of equity securities and use of proceeds
None.
Item 3.    Defaults upon senior securities
None.
Item 4.    Mine safety disclosures
Not applicable.
Item 5.    Other information
None.
Item 6.    Exhibits
Exhibit no. Exhibit description Method of filing
Filed herewith
Filed herewith
Filed herewith
Furnished herewith
Furnished herewith
101 XBRL exhibits Filed herewith
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) Filed herewith

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Avantor, Inc.
Date: April 28, 2021 By: /s/ Steven Eck
Name: Steven Eck
Title: Senior Vice President, Chief Accounting Officer (Principal Accounting Officer)

31

Exhibit 10.1
VWR MANAGEMENT SERVICES, LLC
Radnor Corporate Center
Building One, Suite 200
100 Matsonford Road, Radnor, PA 19087
April 2, 2019
Michael Wondrasch
9 Callery Way
Malvern, PA 19355
RE: Amended and Restated Employment Letter Agreement
Dear Michael:
The following are the amended and restated terms of your employment with VWR Management Services, LLC, effective as of the date hereof, under which you will provide services to Avantor, Inc. and its various affiliates. As used herein, “Avantor” shall collectively refer to VWR Management Services, LLC, Avantor, Inc. and all of their various affiliates.
Position:
Executive Vice President, Chief Information Officer
Base Salary:
$365,000 per year, payable in installments on Avantor’s regular payroll dates.
Duties:
The duties performed by you as of immediately prior to the date of this Agreement.
Reporting:
You will report solely and directly to the Chief Executive Officer of Avantor.
Office Location:
Your office will be located in Radnor, PA.
Annual Bonus:
You will be eligible to participate in Avantor’s Management Incentive Program (MIP) with a target bonus of 75% of base salary.
Benefits:
You will be entitled to participate in all vacation, health, welfare and other similar benefits available to similarly situated employees of Avantor. You will be entitled to four weeks of vacation annually.


Severance/Restrictive Covenants:
If your employment with Avantor is terminated by Avantor without Cause, other than within a two year period following a Change in Control (each as defined on Annex 1), you will be entitled to receive (A) an amount equal to your annual base salary then in effect, payable in equal installments on Avantor’s regular payroll dates during a period of twelve months after such termination, (B) your target bonus, prorated for the year of such termination, payable in equal installments on Avantor’s regular payroll dates during a period of twelve months after such termination and (C) continued health benefits for a period ending on the earlier of (x) your becoming eligible to receive health benefits from a new employer and (y) twelve months after such termination. The payments (and benefits) described in the immediately preceding sentence that are due to be paid (or provided) more than sixty (60) days after your termination are subject to your execution and non-revocation of a general release in the form attached to this Letter Agreement as Annex 2 no later than fifty (50) days after your termination.
If your employment with Avantor or its successor, as applicable, is terminated by you for Good Reason (as defined on Annex 1) or by Avantor without Cause within a two year period following a Change in Control, you will be entitled to receive (A) an aggregate amount equal to 1.5 times the sum of (x) your base salary then in effect, plus (y) your target bonus for the year of such termination, payable in equal installments on Avantor’s regular payroll dates during a period
of twelve months after such termination and (B) continued health benefits for a period ending on the earlier of (x) your becoming eligible to receive health benefits from a new employer and (y) eighteen months after such termination. The payments (and benefits) described in the immediately preceding sentence that are due to be paid (or provided) more than sixty (60) days after your termination are subject to your execution and non-revocation of a general release in the form attached to this Letter Agreement as Annex 2 no later than fifty (50) days after your termination.
If your employment is terminated by Avantor by reason of your Disability (as defined on Annex 1), you will be entitled to any compensation and benefits accrued prior to the termination date, including Avantor’s standard applicable disability insurance benefits.
If your employment with Avantor is terminated by reason of your death, your beneficiary or estate, as applicable, will be entitled to any compensation and benefits accrued prior to the termination date, including Avantor’s standard applicable life insurance benefits.
If your employment is terminated by you without Good Reason, you will only be entitled to any compensation and benefits accrued prior to the termination date. Any such resignation shall require that written notice be delivered by you to Avantor at least 90 days prior to your termination and any failure by you to provide such written notice shall be considered a material breach of this Agreement by you.
If your employment is terminated by Avantor for Cause, you will only be entitled to any compensation and benefits accrued prior to the termination date.
In the event of a termination of your employment for any reason, you agree to be subject to those restrictions set forth on Annex 1 attached hereto, which are a part of this Letter Agreement (the “Employee Covenants”).


You shall be under no obligation to seek other employment for any reason or to mitigate any severance payments following a termination of your employment with Avantor for any reason. In addition, there shall be no offset against amounts due to you upon termination of your employment with Avantor on account of any compensation attributable to any employment subsequent to your employment with Avantor. Subject to the notice requirement as set forth above, either you or Avantor may terminate your employment with Avantor at any time.
Except as provided above in this Severance/Restrictive Covenants section, you shall not be entitled to any other salary, compensation or benefits from Avantor after termination of your employment with Avantor, except as otherwise specifically provided for in Avantor’s employee benefit plans or as otherwise expressly required by applicable law.
Notwithstanding anything herein to the contrary, if any payments due hereunder would subject you to any tax imposed under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), as a result of your characterization as a “specified employee” of Avantor (within the meaning of Treasury Regulation Section 1.409A-1(i)), then such payments that would otherwise cause such taxation shall be payable in a single lump sum on the first
business day that is six months following your “separation from service” (within the meaning of Code Section 409A and the regulations thereunder), and any remaining payments will be made in accordance with the foregoing provisions of this section.
Personal Services Agreement:
The Personal Services, Confidentiality and Inventions Agreement, that you previously executed, in the form attached hereto as Exhibit A, shall remain in full force and effect.
Entire Agreement:
This Letter Agreement, (including any Annexes attached hereto) and the Personal Services, Confidentiality and Inventions Agreement referenced above set forth the entire understanding between you and Avantor with respect to the subject matter hereof and thereof, and supersede and preempt all prior oral or written understandings and agreements with respect to the subject matter hereof and thereof between you and Avantor and its affiliates, which shall terminate and be of no further effect upon the execution of this Letter Agreement.
This Letter Agreement, and all of your rights and duties hereunder, shall not be assignable or delegable by you. Any purported assignment or delegation by you in violation of the foregoing shall be null and void ab initio and of no force and effect. This Letter Agreement may be assigned by Avantor to a person or entity which is a successor in interest to substantially all of the business operations of Avantor, or to a subsidiary or affiliate of Avantor. Upon such assignment, the rights and obligations of Avantor hereunder shall become the rights and obligations of such subsidiary, affiliate or successor person or entity.


Code Section 409A:
This Letter Agreement will be interpreted to avoid any tax under §409A of the Code. For purposes of §409A, each payment made under this Letter Agreement will be treated as a separate payment. With respect to any reimbursements provided under this Letter Agreement that are subject to §409A, the amount of expenses eligible for reimbursement during a calendar year cannot affect the
expenses eligible for reimbursement in any other calendar year.
[Signature page follows]




VWR MANAGEMENT SERVICES, LLC
By: VWR International, LLC, its sole member
By: /s/ Justin M. Miller
Name: Justin M. Miller
Title: EVP & General Counsel
Accepted and Agreed
/s/ Michael Wondrasch
Michael Wondrasch
Date: 4/5/2019


Exhibit A - Personal Services, Confidentiality and Inventions Agreement
See Attached.


VAIL HOLDCO CORP
PERSONAL SERVICES, CONFIDENTIALITY AND INVENTIONS AGREEMENT
THIS AGREEMENT (this “Agreement”) is between Vail Holdco Corp, presently headquartered at Radnor Corporate Center, Building One, Suite 200, 100 Matsonford Road, Radnor, PA 19087 (with its various affiliates, the “Company”) and Michael Wondrasch (“Executive” or “I”) who is employed by Avantor.
Avantor’s sound business policy requires that its trade secrets, technical and non-technical know-how, business knowledge, plans, systems, business methods, business records and customer relations to be protected and not utilized by any person or firm who competes or wants to compete with Avantor. The parties wish to evidence the terms of the employment relationship between them and particularly to set forth certain restrictions which shall apply to Executive in the event of termination of his/her employment with Avantor.
In consideration of and as part of the terms of employment by Avantor, it is agreed as follows:
1.Compensation and Benefits. Executive shall be entitled to a salary, annual bonus and other monetary compensation, which shall be established by Avantor at the inception of employment, and may be periodically thereafter adjusted for increase only. Executive shall also be entitled to participate in various Company employee benefit plans (for example, health insurance, retirement, and the like), in accordance with the participation requirements of said plans, and nothing contained herein shall confer benefit eligibility which is in any manner inconsistent with the terms of the benefit plans.
2.Executive’s General Obligations; Conflicts of Interest. During my employment with Avantor, I agree to devote substantially all my working time during normal business hours to Avantor. During my employment with Avantor, I agree to use my best efforts to perform the duties associated with my position and title with Avantor as Avantor may direct, not to engage in any other business or activity the nature of which shall be determined by Avantor to be competitive with Avantor, its suppliers or its customers and to comply with any Conflict of Interest Policy of Avantor. I acknowledge and agree that I will not serve on the board of directors of any other companies during my employment with Avantor without first obtaining prior written approval from Avantor’s Chief Executive Officer. I further agree to conform to all Company policies, practices, and procedures, to the extent such policies, practices and procedures have been provided to me in writing, as well as lawful directions of Avantor and/or its affiliates as to performance of services for Avantor, to the extent that the same are consistent with my position and title with Avantor.
3.No Existing Restrictive Agreements. I represent that I am not a party to any contract limiting my present or future right to work for Avantor or to perform such activities as shall be required from time to time by Avantor.
4.Prior Employer Information. I agree that I will not use improperly or disclose any confidential or proprietary information or trade secrets of my former or current employers, principals, partners, co-venturers, customers, or suppliers, or the vendors or customers of such persons or entities, and I will not violate any nondisclosure or proprietary rights agreement I might have signed in connection with any such employer, person or entity.


5.Non-Disclosure of Information. I recognize that, in the performance of my duties with Avantor, Confidential Information belonging to Avantor will come into my possession, including, without limitation, information regarding business methods, plan, systems, customer lists and customer relations, vendor lists and vendor relations, cost and pricing information, distribution and logistical information, and other information relating to the business of Avantor that is not known to the general public. I recognize that the business of Avantor is materially dependent upon the relationship between Avantor and its customers who are serviced by its associates and that Avantor has and will entrust me with Confidential Information that must remain the property of Avantor. As used in this Agreement, “Confidential Information” shall mean the trade secrets, technical and non-technical know-how, technical and business knowledge and information, plans and systems, business methods, customer lists and customer relations of Avantor, including but not limited to research, development, manufacturing, purchasing, accounting, data processing, engineering, marketing, merchandising, selling and invoicing, which information is acquired from or through Avantor during the course of my employment by Avantor. “Confidential Information” shall not include any information that is or becomes publicly known or that enters the public domain other than as a result of my breach of my obligations under this Agreement or any other agreement between me and Avantor or its affiliates. I agree that I will not at any time hereafter disclose Confidential Information to third parties or use Confidential Information for any purpose other than to further Avantor’s business, except as is required by law, any court of competent jurisdiction or any governmental agency or authority or recognized subpoena power.
Notwithstanding the above, nothing in this Agreement shall prohibit or impede Executive from communicating, cooperating or filing a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such communications and disclosures are consistent with applicable law. I understand and acknowledge that an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made (i) in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. I understand and acknowledge further that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order. Except as provided in this paragraph or under applicable law, under no circumstance am I authorized to disclose any information covered by Avantor’s attorney-client privilege or attorney work product, or trade secrets, without prior written consent of Avantor.
6.Assignment of Inventions. I will make prompt and full disclosure to Avantor, will hold in trust for the sole benefit of Avantor, and will assign, exclusively to Avantor, all my right, title, and interest in and to any and all inventions, discoveries, designs, developments, improvements, copyrightable material, and trade secrets (collectively herein “Inventions”) that I, solely or jointly, may conceive, develop, or reduce to practice during the period of time I am in the employ of Avantor. I hereby waive and quitclaim to Avantor any and all claims of any nature whatsoever that I now or hereafter may have for infringement of any patent resulting from any patent applications for any Inventions so assigned to Avantor.


My obligation to assign shall not apply to any Invention about which I can prove that:
(a)    it was developed entirely on my own time; and
(b)    no equipment, supplies, facility, services, or trade secret information of Avantor were used in its development; and
(c)    it does not relate (i) directly to the business of Avantor or (ii) to the actual or demonstrably anticipated research or development of Avantor; and
(d)    it does not result from any work performed by me for Avantor.
7.Excluded and Licensed Inventions. I have attached hereto a list describing all Inventions belonging to me and made by me prior to my employment with Avantor that I wish to have excluded from this Agreement. If no such list is attached, I represent that there are no such Inventions. If in the course of my employment at Avantor, I incorporate into a Company product, process, or machine, an Invention owned by me or in which I have an interest, Avantor is hereby granted and shall have an exclusive royalty-free, irrevocable, worldwide license to make, have made, use, and sell that Invention without restriction as to the extent of my ownership or interest.
8.Application for Copyrights and Patents. I will execute any proper oath or verify any proper document in connection with carrying out the terms of this Agreement. If, because of my mental or physical condition or for any other reason whatsoever, Avantor is unable to secure my signature to apply for or to pursue any application for any United States or foreign patent or copyright covering Inventions assigned to Avantor as stated above, I hereby irrevocably designate and appoint Avantor and its duly authorized officers and agents as my agent and attorney in fact, to act for me and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of U.S. and foreign patents and copyrights thereon with the same legal force and effect as if executed by me. I will testify at Avantor’s request and expense in any interference, litigation, or other legal proceeding that may arise during or after my employment.
9.Third Party Information. I recognize that Avantor has received and will receive confidential or proprietary information from third parties subject to a duty on Avantor’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. This information shall be deemed not to include any information that is or becomes publicly known or that enters the public domain other than as a result of my breach of my obligations under this Agreement or any other agreement between me and Avantor or its affiliates. During the term of my employment and thereafter I will not disclose nor use such information for the benefit of anyone other than Avantor or such third party, or in any manner inconsistent with any agreement between Avantor and such third party of which I am made aware, except as is required by law, any court of competent jurisdiction or any governmental agency or authority or recognized subpoena power.
10.Termination. I acknowledge that this Agreement shall not constitute a contract for employment for any specific period of time, and that either Avantor or I am free to terminate this Agreement, and employment relationship, “at will,” at any time, with or without cause. I agree that upon termination of this Agreement and my employment, for any or no reason, I will promptly return to Avantor all records of Confidential Information, including copies in my possession, and all other physical properties issued to me as an employee, in a reasonable state of function or repair.


I will also so return any keys, pass cards, identification cards or other property belonging to Avantor.
11.Non-Waiver. The failure by Avantor to enforce any of the provisions hereof upon any default by me at a particular time or under certain circumstances shall not be treated as a permanent waiver of such provisions and shall not prevent subsequent enforcement of such provisions upon default by either party.
12.Irreparable Harm. I agree that any proven breach of this Agreement by me would cause irreparable harm to Avantor for which monetary damages could not adequately compensate. If Avantor proves a breach, irreparable harm shall be presumed and I expressly waive any bonding requirement as a prerequisite to Avantor obtaining injunctive relief. Avantor can also seek damages.
13.Assignability of This Agreement. The services contracted for between Avantor and me in this Agreement are personal, and therefore I may not assign this Agreement to any other person or entity. This Agreement may, however, be assigned by Avantor to a successor to the business of Avantor or to an affiliate of Avantor.
14.Severability. It is the intention of the parties that this Agreement shall be enforceable to the fullest extent permitted by local, state, and/or federal law in the jurisdiction in which performance of this Agreement occurs, or in which performance of this Agreement is sought to be enforced. In the event that a court of competent jurisdiction determines that one or more provisions of this Agreement are not enforceable under the provisions of the jurisdiction in which performance occurs or enforcement is sought, such a determination shall not affect the enforceability of the remainder of this Agreement.
15.Other Agreements. This Agreement, together with the letter agreement, dated April 5, 2018, between me and Avantor (the “Letter Agreement”), sets forth the sole and entire agreement between the parties hereto, and supersedes and replaces any and all prior agreements, whether oral, written, or implied, entered into by me and Avantor, pertaining to my employment, the terms, conditions, and responsibilities thereof, and/or any other subject matter contained in this Agreement or the Letter Agreement. This Agreement and the Letter Agreement shall be considered together as one agreement. There will be no modification of this Agreement, either verbal, implied, written, or otherwise, except through a written agreement signed by me, and an officer of Avantor, which refers to the specific paragraph of this Agreement intended to be modified, and sets forth, in writing, the specific modification of said paragraph. This Agreement and the Letter Agreement will supersede and preempt all prior oral or written understandings and agreements with respect to the subject matter hereof and thereof between me and Avantor and its affiliates (including without limitation, Avantor, Inc. and VWR Corporation and their respective affiliates).
[Signature page follows]


WITNESS WHEREFORE, the parties have executed this Agreement as of the ___ day
of April, 2018.
VAIL HOLDCO CORP
Executive – Signature
By:
Its:
Executive – Print Name


Annex 1 - Employee Covenants
1.    Noncompetition, Nonsolicitation and Nondisparagement. You acknowledge that in the course of your employment with Avantor or any of its Subsidiaries or Affiliates you will become familiar with Avantor’s and its Subsidiaries’ and Affiliates’ trade secrets and with other confidential information concerning Avantor and such Subsidiaries and Affiliates and that your services will be of special, unique and extraordinary value to Avantor and such Subsidiaries and Affiliates. Therefore, you agree that:
(a)    Noncompetition. During the Employment Period and for a period of twelve months thereafter, you shall not directly or indirectly, anywhere in the world, own, manage, control, participate in, consult with, render services for or enter into employment with any business or organization that competes with the business that Avantor or any of its Subsidiaries or Affiliates is engaged in at the time of your Separation (the “Business”). Nothing herein shall prohibit you from being a passive owner of not more than 2% of the outstanding stock of any class of a corporation that is publicly traded, so long as you have no active participation in the business of such corporation.
(b)    Nonsolicitation. During the Employment Period and for a period of twenty-four months thereafter, you shall not directly or indirectly (i) induce or attempt to induce any employee of Avantor or any of its Subsidiaries or Affiliates to leave the employ of Avantor or any such Subsidiary or Affiliate, or in any way interfere with the relationship between Avantor or any of its Subsidiaries or Affiliates and any employee thereof, (ii) hire any person who was an employee of Avantor or any of its Subsidiaries or Affiliates within 180 days after a Separation, (iii) induce or attempt to induce any customer, supplier, licensee or other business relation of Avantor or any of its Subsidiaries or Affiliates to cease doing business with Avantor or such Subsidiary or Affiliate or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and Avantor or any of its Subsidiaries or Affiliates or (iv) directly or indirectly acquire or attempt to acquire an interest in any business relating to the Business and with which Avantor or any of its Subsidiaries or Affiliates has entertained discussions relating to the acquisition of such business by Avantor or any of its Subsidiaries or Affiliates in the twelve month period immediately preceding a Separation.
(c)    Nondisparagement. During the Employment Period and at any time thereafter, you shall not disparage Avantor or any of its affiliates, or any employee, director, shareholder or member of Avantor or its affiliates.
(d)    Enforcement. If, at the time of enforcement of Section 1 or 2, a court holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law. Because your services are unique and because you have access to confidential information, the parties hereto agree that money damages would be an inadequate remedy for any breach of this Annex 1. Therefore, in the event a breach or threatened breach of this Annex 1, Avantor or any of its Subsidiaries or Affiliates or their successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security).



(e)    Additional Acknowledgments. You acknowledge that the provisions of Sections 1 and 2 are in consideration of: (i) employment with Avantor or its Subsidiaries or Affiliates and (ii) additional good and valuable consideration, including the payment of salary and bonus, as set forth in this Letter Agreement. In addition, you agree and acknowledge that the restrictions contained in Sections 1 and 2 do not preclude you from earning a livelihood, nor do they unreasonably impose limitations on your ability to earn a living. In addition, you acknowledge (A) that the business of Avantor and its Subsidiaries and Affiliates will be conducted throughout the world, (B) notwithstanding the state of incorporation or principal office of Avantor or any of its Subsidiaries or Affiliates, or any of their respective executives or employees (including you), it is expected that Avantor and its Subsidiaries and Affiliates will have business activities and have valuable business relationships within its industry throughout the world, and (C) as part of your responsibilities, you will be traveling throughout the world in furtherance of Avantor’s or any of its Subsidiaries’ or Affiliates’ business and relationships. You agree and acknowledge that the potential harm to Avantor and any of its Subsidiaries and Affiliates of the non-enforcement of Sections 1 and 2 outweighs any potential harm to you of its enforcement by injunction or otherwise. You acknowledge that you have carefully read this Annex 1 and have given careful consideration to the restraints imposed upon you by this Annex 1, and are in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of Avantor and any of its Subsidiaries and Affiliates now existing or to be developed in the future. You expressly acknowledge and agree that each and every restraint imposed by this Annex 1 is reasonable with respect to subject matter, time period and geographical area.
2.    Definitions.
“Affiliate” means, with respect to any Person, any Person that controls, is controlled by or is under common control with such Person or an Affiliate of such Person.
“Board” means Avantor’s board of directors.
“Cause” means (i) the conviction of, or entry of a plea of nolo contendere with respect to, a felony or a crime involving moral turpitude, or the commission of fraud with respect to Avantor or any of its Subsidiaries or Affiliates or any of their customers or suppliers, (ii) substantial and repeated failure to perform duties as reasonably directed by the Board or a supervisor or report, after providing you with 15 days’ prior written notice and a reasonable opportunity to remedy such failure, (iii) gross negligence or willful misconduct with respect to Avantor or any of its Subsidiaries or Affiliates or (iv) a material violation of material Company rules or policies. Your cessation of employment shall not be deemed to be for Cause unless and until, if capable of being cured, the act or omission constituting Cause is not cured within 15 days following your receipt of written notice regarding such act or omission.
“Change in Control” shall have the meaning ascribed to it in the Vail Holdco Corp Equity Incentive Plan.
“Disability” shall have the meaning ascribed to it in Avantor’s long-term disability policy.
“Employment Period” means the period during which you are employed by Avantor or any of its Subsidiaries or Affiliates, regardless of whether such employment is pursuant to the terms of this Letter Agreement or another agreement.
“Good Reason” means, within the two year period following a Change in Control, (i) a material diminution to your base salary, bonus opportunity, authority, duties or responsibilities, (ii) Avantor fails to make any compensatory payment to you when due, which is required to be paid to you pursuant to the


Letter Agreement, (iii) a relocation of your principal place of employment to a location that is outside a 50 mile radius from your principal place of employment immediately prior to a Change in Control, or (iv) any other action or inaction by Avantor which constitutes a material breach by Avantor of the Letter Agreement; provided that, in order for your resignation for Good Reason to be effective, written notice of the occurrence any event that constitutes Good Reason must be delivered by you to Avantor within 90 days after you have actual knowledge of the occurrence of any such event and the occurrence of such event is not cured by Avantor within thirty (30) days after the date of such written notice by you to Avantor.
“Person” means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, investment fund, any other business entity and a governmental entity or any department, agency or political subdivision thereof.
“Separation” means you ceasing to be employed by Avantor or any of its Subsidiaries or Affiliates for any reason.
“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association, or business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association, or other business entity (other than a corporation) if such Person or Persons shall be allocated a majority of limited liability company, partnership, association, or other business entity gains or losses or shall be or control any managing director or general partner of such limited liability company, partnership, association, or other business entity. For purposes hereof, references to a “Subsidiary” of any Person shall be given effect only at such times that such Person has one or more Subsidiaries, and, unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary of Avantor.
3.    Miscellaneous.
(a)    Applicable Law. This Annex 1 shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania, without giving effect to any choice of law or conflict of law rules or provisions (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the Commonwealth of Pennsylvania.
(b)    Consent to Jurisdiction. You hereby irrevocably submit to the nonexclusive jurisdiction of the United States District Court for the Eastern District of Pennsylvania and the state courts of the Commonwealth of Pennsylvania for the purposes of any suit, action or other proceeding arising out of this Annex 1 or any transaction contemplated hereby. You further agree that service of any process, summons, notice or document by certified or registered mail to your address as listed above or such other address or to the attention of such other person as you have specified by prior written notice to Avantor shall be effective service of process in any action, suit or proceeding in the Commonwealth of Pennsylvania with


respect to any matters to which you have submitted to jurisdiction as set forth above in the immediately preceding sentence. You irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of this Annex 1 or the transactions contemplated hereby in the United States District Court for the Eastern District of Pennsylvania or the state courts of the Commonwealth of Pennsylvania and hereby irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding brought in such court has been brought in an inconvenient forum.
(c)    Additional Agreements. The provisions of this Annex 1 are in addition to, and do not supersede, the provisions of the Personal Services, Confidentiality and Inventions Agreement between you and Avantor.
(d)    MUTUAL WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS LETTER AGREEMENT (INCLUDING AVANTOR) HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THIS LETTER AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR THE RELATIONSHIPS ESTABLISHED AMONG THE PARTIES HEREUNDER.


Annex 2 - General Release
I, Michael Wondrasch, in consideration of and subject to the performance by VWR Management Services, LLC, a Delaware limited liability company (together with its affiliates, the “Company”), of its obligations under the Employment Letter Agreement, dated as of April 2, 2019 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and all present and former directors, officers, agents, representatives, employees, successors and assigns of the Company and the Company’s direct or indirect owners (collectively, the “Released Parties”) to the extent provided below.
1.    I understand that any payments or benefits paid or granted to me under the “Severance/Restrictive Covenants” section of the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive the payments and benefits specified in the “Severance/Restrictive Covenants” section of the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter or breach this General Release. I also acknowledge and represent that I have received all payments and benefits that I am entitled to receive (as of the date hereof) by virtue of any employment by the Company.
2.    Except as provided in paragraph 4 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).
3.    I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.
4.    I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in


compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).
5.    In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims. I further agree that I am not aware of any pending claim of the type described in paragraph 2 as of the execution of this General Release.
6.    I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.
7.    I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or this Agreement, except to my immediate family and any tax, legal or other counsel I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone. Notwithstanding anything herein to the contrary, each of the parties (and each affiliate and person acting on behalf of any such party) agree that each party (and each employee, representative, and other agent of such party) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of this transaction contemplated in the Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to such party or such person relating to such tax treatment and tax structure, except to the extent necessary to comply with any applicable federal or state securities laws. This authorization is not intended to permit disclosure of any other information including (without limitation) (i) any portion of any materials to the extent not related to the tax treatment or tax structure of this transaction, (ii) the identities of participants or potential participants in the Agreement, (iii) any financial information (except to the extent such information is related to the tax treatment or tax structure of this transaction), or (iv) any other term or detail not relevant to the tax treatment or the tax structure of this transaction.
8.    Any non-disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the National Association of Securities Dealers, Inc. (NASD), any other self-regulatory organization or governmental entity. Furthermore, nothing in this Agreement shall prohibit or impede you from communicating, cooperating or filing a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided that in each case such communications and disclosures are consistent with applicable law. You understand and acknowledge that an individual shall not be held criminally or civilly liable under any Federal or


State trade secret law for the disclosure of a trade secret that is made (i) in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. You understand and acknowledge further that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order. Except as provided in this paragraph or under applicable law, under no circumstance are you authorized to disclose any information covered by the Company’s attorney-client privilege or attorney work product, or trade secrets, without prior written consent of the Company.
9.    Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.
10.    Whenever possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.
BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:
(i)    I HAVE READ IT CAREFULLY;
(ii)    I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;
(iii)    I VOLUNTARILY CONSENT TO EVERYTHING IN IT;
(iv)    I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;
(v)    I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON _______________ __, _____ TO CONSIDER IT AND THE CHANGES MADE SINCE THE _______________ __, _____ VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT RESTART THE REQUIRED 21-DAY PERIOD;
(vi)    THE CHANGES TO THE AGREEMENT SINCE _______________ ___, _____ EITHER ARE NOT MATERIAL OR WERE MADE AT MY REQUEST.


(vii)    I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;
(viii)    I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND
(ix)    I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF AVANTOR AND BY ME.
DATE:


Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Michael Stubblefield, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Avantor, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: April 28, 2021 By: /s/ Michael Stubblefield
Name: Michael Stubblefield
Title: President and Chief Executive Officer



Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Thomas A. Szlosek, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Avantor, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: April 28, 2021 By: /s/ Thomas A. Szlosek
Name: Thomas A. Szlosek
Title: Executive Vice President and Chief Financial Officer
(Principal Financial Officer)



Exhibit 32.1
Certification Pursuant to
18 U.S.C. Section 1350,
as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report on Form 10-Q of Avantor, Inc. (the “Company”) for the three months ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Stubblefield, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: April 28, 2021 By: /s/ Michael Stubblefield
Name: Michael Stubblefield
Title: President and Chief Executive Officer



Exhibit 32.2
Certification Pursuant to
18 U.S.C. Section 1350,
as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report on Form 10-Q of Avantor, Inc. (the “Company”) for the three months ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas A. Szlosek, Executive Vice President, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: April 28, 2021 By: /s/ Thomas A. Szlosek
Name: Thomas A. Szlosek
Title: Executive Vice President and Chief Financial Officer
(Principal Financial Officer)