Lonza acquires Capsugel for $5.5 billion

Thursday, 15. December 2016 08:37

After confirming negotiations earlier in the week, Lonza Group of Switzerland said on Thursday it agreed to take over New Jersey–based Capsugel, manufacturer of capsules for the dosage of oral medicine and supplements. The all-cash deal is worth $5.5 billion, from which $2 billion is for debt refinancing. The specialty chemicals and biotechnology firm will take over the target entity from private equity investor KKR and Co. LP from New York City through a combination of debt and equity financing.

Capsugel was owned by Pfizer until 2011. Earlier reports indicated there were more companies interested in buying the business. Lonza sees synergy potential at 100 million francs in the mid- to long-term. It said operating synergies reaching an annual 30 million francs within three years.

"This new integrated approach will benefit our customers, who will gain from the simplicity and efficiency of working with one company that can provide world-leading support from APIs (application program interfaces) to excipients and dosage forms," said Richard Ridinger, Lonza's chief executive.


Image: EPA / Zsolt Czegledi

Related Links: Lonza Group AG
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