Lonza in $5.5 billion deal to acquire Capsugel
pharmafile | December 15, 2016 | News story | Business Services, Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | Capsugel, Lonza, acquistion
Lonza, the Basel-based supplier to the pharmaceutical, biotech and nutrition industry, has announced that it will acquire Capsugel for $5.5 billion. The transaction is expected to close in the second quarter of 2017 and will see Lonza develop closer manufacturing links with the pharmaceutical industry.
Capsugel, which is based in New Jersey, manufactures empty two-piece hard capsules and finished dosage forms for the delivery of drugs and food supplements. It has 13 facilities across three continents and serves 4,000 corporate customers.
Richard Ridinger, Chief Executive Officer of Lonza, explained the deal in a statement: “The acquisition of Capsugel meets Lonza’s strategic and financial goals. It accelerates our healthcare continuum strategy by giving us broader exposure to the fast-growing pharma and consumer healthcare markets. We expect the transaction to be accretive to our core earnings per share in the first full year post closing.”
Lonza expects that the deal will achieve operating synergies of 30 million Swiss francs, with 30 million francs gained from tax synergies by the third year and 100 million francs top line synergies in the longer term. The deal will include taking on board $2 billion of Capsugel’s debt
The acquisition of Capsugel adds to Lonza’s previous deal, earlier in the year, to purchase nutritional ingredients maker InterHealth Nutraceuticals, in a deal worth up to $300 million.
Ben Hargreaves
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