Lonza Signs Agreement to Divest Specialty Ingredients Business to Bain Capital and Cinven
- Lonza Specialty Ingredients to be sold to Bain Capital and Cinven for an enterprise value of CHF 4.2 billion
- Divestment will allow Lonza to refocus its business as a pure-play partner to the healthcare industry
- Successful track record of investment in industrials sector and portfolio companies confirms that Bain Capital and Cinven are the right home for the business
- Smooth transition for employees and customers is a priority for both seller and buyers. The transaction is anticipated to close in H2 2021
Quote from Albert M. Baehny, Chairman, Lonza:
"Today's announcement is the result of a comprehensive and robust selection process.
Bain Capital and Cinven have shown they understand the value of the experience and expertise of our Specialty Ingredients employees. They presented the most compelling industrial strategy and vision for the business, they are also keen to prioritize R&D and innovation, as well as to invest in existing facilities to unlock the potential of the business.
The sale of the Specialty Ingredients business will allow Lonza to focus on its position as a leading partner to the healthcare industry, and the free cash flows resulting from the sale will allow us to accelerate our strategic priorities.
We look forward to continuing to collaborate with Bain Capital and Cinven to ensure a seamless transition for customers and employees."
Basel, Switzerland, 8 February 2021 - Lonza has entered into a definitive agreement with Bain Capital and Cinven to acquire Lonza's Specialty Ingredients business and operations for an enterprise value of CHF 4.2 billion.
Both Bain Capital and Cinven have strong experience in the industrials sector and an established track record of successful investments in portfolio companies. The two private equity bidders showed strong and sustained interest since the beginning of the official sale process, thereby confirming that they are the best home for the business and the right transaction partner for Lonza.
Lonza's Specialty Ingredients business operates across 17 manufacturing sites globally and has approximately 2,800 permanent employees. The business is a leading provider of microbial control solutions for Professional Hygiene and Personal Care products. It also offers the custom development and manufacturing of specialty chemicals and composites to support the electronics, aerospace, food and agrochemical industries.
The transaction is expected to close in H2 2021, subject to customary closing conditions. The ownership transfer process is expected to be smooth. Bain Capital and Cinven have confirmed that high standards of service delivery and quality for customers will remain a priority following closing.
BofA Securities and UBS are acting as joint financial advisors to Lonza.
About Lonza
Lonza is the preferred global partner to the pharmaceutical, biotech and nutrition markets. We work to prevent illness and enable a healthier world by supporting our customers to deliver new and innovative medicines that help treat a wide range of diseases. We achieve this by combining technological insight with world-class manufacturing, scientific expertise and process excellence. These enable our customers to commercialize their discoveries and innovations in the healthcare sector.
Founded in 1897 in the Swiss Alps, today Lonza operates across three continents. With approximately 14,000 full-time employees, we are built from high-performing teams and of individual talent who make a meaningful difference to our own business, as well as to the communities in which we operate. The company generated sales of CHF 4.5 billion in 2020 with a CORE EBITDA of CHF 1.4 billion. Find out more at www.lonza.com
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Lonza Contact Details
Victoria Morgan Head of Corporate Communications Lonza Group Ltd Tel +41 61 316 2283 victoria.morgan@lonza.com |
Additional Information and Disclaimer
Lonza Group Ltd has its headquarters in Basel, Switzerland, and is listed on the SIX Swiss Exchange. It has a secondary listing on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Lonza Group Ltd is not subject to the SGX-ST's continuing listing requirements but remains subject to Rules 217 and 751 of the SGX-ST Listing Manual.
Certain matters discussed in this news release may constitute forward-looking statements. These statements are based on current expectations and estimates of Lonza Group Ltd, although Lonza Group Ltd can give no assurance that these expectations and estimates will be achieved. Investors are cautioned that all forward-looking statements involve risks and uncertainty and are qualified in their entirety. The actual results may differ materially in the future from the forward-looking statements included in this news release due to various factors. Furthermore, except as otherwise required by law, Lonza Group Ltd disclaims any intention or obligation to update the statements contained in this news release.
