Lonza is exiting the specialty chemicals business to focus on pharmaceuticals.
Bain Capital and Cinven agreed to purchase Lonza’s specialty ingredients business and operations for an enterprise value of CHF 4.2 billion (about $4.66 billion).
“[This] 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," said Lonza Chairman Albert M. Baehny. "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."
According to Baehny, the sale of the specialty ingredients business will allow Lonza to focus on its position as a partner to the healthcare industry, and the free cash flows resulting from the sale will allow Lonza to accelerate its strategic priorities.
In a statement, Lonza said 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, subject to customary approvals, is expected to close in the second half of the year.
