Mega Deal Lonza to Sell its Specialty Ingredients Business for 4.6 Billion Dollars
Lonza has plans to divest its Specialty Ingredients business to Bain Capital and Cinven for 4.6 billion dollars. The move is expected to assist Lonza to refocus its business in the healthcare industry.
Basel/Switzerland – 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 4.6 billion dollars (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.