Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

16. Related Party Transactions

Avista, the Company’s majority shareholder, provided certain advisory services to the Company pursuant to an advisory services and monitoring agreement. The Company was required to pay an annual fee of $1.0 million and other reasonable and customary advisory fees, as applicable, paid on a quarterly basis. The initial term of the agreement was seven years. On June 25, 2015, the Company exercised its right to terminate its advisory services and monitoring agreement with Avista. In connection with such termination, the Company has paid Avista Capital Holdings, L.P. an aggregate termination fee of $6.5 million, which is included in general and administrative expenses in the condensed consolidated statement of operations. During the three months ended September 30, 2015, the Company did not incur any costs associated with this agreement as compared to $0.3 million for the prior year comparative period. During the nine months ended September 30, 2015, the Company incurred costs associated with this agreement totaling $7.0 million as compared to the $0.8 million for the prior year comparative period. At December 31, 2014, $10,000 was included in accrued expenses. There were no amounts outstanding as of September 30, 2015.

The Company purchases inventory supplies from VWR Scientific, or VWR. Avista and certain of its affiliates are principal owners of both VWR and the Company. During each of the three and nine months ended September 30, 2015 and 2014, the Company made purchases of $0.1 million and $0.2 million, respectively. At September 30, 2015 and December 31, 2014, $9,000 and $21,000, respectively, was included in accounts payable and accrued expenses.

The Company retains Marsh for insurance brokering and risk management. Donald Bailey, brother of the Company’s former President and Chief Executive Officer, Jeffrey Bailey, is head of sales for Marsh’s U.S. and Canada division. During each of the nine months ended September 30, 2015 and 2014, the Company paid Marsh $0.2 million. At both September 30, 2015 and December 31, 2014, a prepaid amount of $43,000 was included in other current assets.