October 1, 2014 / 11:16 PM / 5 years ago

UPDATE 1-Lab supplies provider VWR prices IPO below indicated price range

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Oct 1 (Reuters) - VWR Corp, a provider of laboratory supplies and services, priced its initial public offering at $21 per share, below the price range it had previously indicated, raising $536 million.

The IPO values the company on pro forma basis at about $5 billion, including debt.

VWR, backed by private equity firm Madison Dearborn Partners LLC, had said last month it expected its common stock to price between $22 and $25 per share.

The company was sold by German drugmaker Merck KGaA in February 2004 to private equity firm Clayton, Dubilier & Rice for $1.68 billion. In 2007, Madison Dearborn bought VWR.

VWR’s parent, Varietal Distribution Holdings LLC, is controlled by Madison Dearborn.

The company intends to list itself on the Nasdaq under the symbol “VWR.”

VWR, which operates more than 160 facilities in 34 countries, sells laboratory products such as chemicals, reagents, consumables, durable products and scientific instruments to more than 120,000 customers, primarily in North America and Europe.

The company intends to use a portion of the net proceeds from the offering to redeem all of its outstanding 10.75 percent senior subordinated notes due 2017 and the remaining net proceeds to repay borrowings under its multi-currency revolving loan facility.

Research firm Frost & Sullivan estimates that the global laboratory products market will grow about 2 percent annually through 2015, VWR said in a filing. (bit.ly/1v7Kfot)

The company reported a net profit applicable to common stockholders of $9 million for the six months ended June 30, compared with a loss of $5 million a year earlier. Net sales rose about 4 percent to $2.16 billion.

BofA Merrill Lynch, Goldman Sachs & Co and J.P. Morgan are the lead underwriters of the IPO. (Reporting By Sudarshan Varadhan)

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