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

By Gareth Macdonald

- Last updated on GMT

iStock/zneb076
iStock/zneb076

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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​."

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