Lonza to buy Capsugel for $5.5bn, no site divestitures planned

15-Dec-2016 - Last updated on 15-Dec-2016 at 11:44 GMT

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Lonza has agreed to buy US capsule manufacturer Capsugel for $5.5bn (€5.2bn) in cash in an acquisition the Swiss firm says will expand its drug delivery business and enable savings of CHF100m a year by 2019.

The takeover, which had been expected since Lonza confirmed its interest in the capsule firm on Monday, is expected to close in the second quarter of 2017.

Lonza expects to achieve operating synergies of CHF30m a year in three years, citing corporate, procurement and IT infrastructure as areas in which savings will be made.

The Swiss firm also predicted “tax synergies” of CHF15m a year and “efficiency gains.”

Lonza said: "The primary initial focus of this transaction is to ensure a seamless integration while continuing the strong growth trajectory of the Capsugel business.

"Lonza believes that the step-by-step integration will preserve the strong innovation culture and lead to a combined top-line synergy potential of around CHF100m per annum in the mid- to long-term."

Integration plan

A Lonza spokesman told us: "It’s expected that the two Capsugel business units, biopharmaceuticals and consumer health & nutrition, will report into both Lonza segments from closing: Biopharma into Pharma&Biotech, CH&N into Specialty Ingredients."

He also told us that: "We don’t foresee any site closing or divestitures."