Lonza to Divest Specialty Ingredients Biz

Lonza has entered into a definitive agreement with Bain Capital and Cinven to to sell its Specialty Ingredients business and operations for an enterprise value of CHF 4.2 billion.

Both Bain Capital and Cinven have experience in the industrials sector and a track record of successful investments in portfolio companies.

Lonza’s Specialty Ingredients business operates across 17 manufacturing sites globally and has approximately 2,800 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 2H21, subject to customary closing conditions.

Albert M. Baehny, Chairman, Lonza, said, “Bain Capital and Cinven have shown they understand the value of the experience and expertise of our Specialty Ingredients employees. They presented the most compelling industrial strategy and vision for the business, they are also keen to prioritize R&D and innovation, as well as to invest in existing facilities to unlock the potential of the business. The sale of the Specialty Ingredients business will allow Lonza to focus on its position as a leading partner to the healthcare industry, and the free cash flows resulting from the sale will allow us to accelerate our strategic priorities. We look forward to continuing to collaborate with Bain Capital and Cinven to ensure a seamless transition for customers and employees.”