Lonza Completes Capsugel Acquisition

July 6, 2017

A $5.5 billion acquisition brings Capsugel’s oral dosage delivery capabilities to Lonza’s portfolio.

Lonza announced on July 6, 2017 that it has completed the acquisition of Capsugel S.A. from KKR for $5.5 billion in cash, including refinancing of existing Capsugel debt of approximately $2 billion. Capsugel will continue to operate in its existing structure until the integration has been completed.

The acquisition is in line with Lonza’s strategy to accelerate growth and deliver value complementing its existing offerings and by creating market opportunities in the pharma and consumer healthcare and nutrition industries, according to a press statement announcing the close of the sale.

The acquisition provides Lonza with a range of technologies that it believes will expand the market reach of both companies’ contract development and manufacturing organization and products businesses. It also supports Lonza’s strategic ambition of getting closer to the patient and end consumer, the company reports.

“Lonza and Capsugel have a highly synergistic customer base and market approach, complementary business models, and closely aligned corporate cultures with a strong commitment to ethics and compliance,” said Richard Ridinger, Lonza's Chief Executive Officer in the company statement. “All of these aspects will facilitate a seamless integration.”

Lonza is a supplier to the pharmaceutical, biotech, and specialty ingredients markets. The company offers products and services including the custom development and manufacturing of APIs and dosage forms for the pharma and consumer health and nutrition industries. Capsugel provides advanced oral dosage delivery technologies, with a focus on hard capsules.

Source: Lonza