Lonza Buys Capsugel in $5.5 Billion Health Care Deal


Dec 15, 2016

Lonza has declared that it will buy private-equity backed U.S. capsule maker Capsugel in a $5.5 billion all-cash deal. This will push the Swiss biotech group further into the health care industry.

Lonza will buy Capsugel via a combination of debt and equity financing and will assume around $2 billion in Capsugel debt. Lonza said the acquisition will add $30 million in annual operating synergies by the third year and a further $15 million in tax synergies each year.

Lonza CEO Richard Ridinger said: “The acquisition of Capsugel meets Lonza’s strategic and financial goals. It accelerates our health care continuum strategy by giving us broader exposure to the fast-growing pharma and consumer health care markets. We expect the transaction to be accretive to our core earnings per share in the first full year post closing.”

In recent months, Lonza, of Basel, has been an active deal maker. The company has recently announced the sale of its Braine-L’Alleud, Belgium-based polypeptides business, to PolyPeptide Laboratories Holding, of Malmo, Sweden and Torrance, Calif. for an undisclosed price. Earlier, Lonza acquired Interhealth Nutraceuticals of Benicia Calif., for up to $300 million and liver-cell specialist Triangle Research Labs, of Triangle Park, N.C. for an undisclosed price.


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