Swiss chemicals and biotech multinational Lonza says that it has completed the acquisition of leading capsule casing and drug dosage specialist Capsugel from KKR for US$ 5.5 billion in cash, including refinancing of existing Capsugel debt of approximately USD 2 billion.
The acquisition aligns closely with Lonza’s strategy to accelerate its growth and ability to deliver value along the healthcare continuum, said the company in statement.
Lonza believes that the combine portfolio offering of the two businesses will make Lonza the “development, formulation, delivery technology and manufacturing partner of choice for the pharma industry”.
Financially, Lonza says it expects to achieve CHF 30 million in annual operating synergies and CHF 15 million tax synergies pa by year three and CHF 100 million pa top-line synergies in the mid- to long-term
Richard Ridinger, Lonza’s chief executive officer, said, “Lonza and Capsugel have a highly synergistic customer base and market approach, complementary business models and closely aligned corporate cultures with a strong commitment to ethics and compliance. All of these aspects will facilitate a seamless integration.”
Capsugel’s business will continue to operate in its existing structure until the full integration has been completed. The company has 13 manufacturing facilities worldwide.