Lonza announced it has completed the acquisition of Capsugel from KKR for $5.5 billion in cash, including refinancing of existing Capsugel debt of approximately $2 billion. The acquisition of Capsugel is expected to be accretive to Lonza’s core earnings per share in the first full year post closing.
This acquisition is in line with Lonza’s stated strategy to accelerate growth and deliver value along the healthcare continuum by complementing its existing offerings and by opening up new market opportunities in the pharma and consumer healthcare and nutrition industries.
Lonza believes the acquisition will expand the market reach of both companies’ contract development and manufacturing organization (CDMO) and products businesses. It also supports Lonza’s strategic ambition of getting closer to the patient and end consumer.
“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,” Richard Ridinger, Lonza's Chief Executive Officer, said.
Capsugel’s business will continue to operate in its existing structure until the full integration has been completed.
The acquisition was financed partially through the net proceeds of the successful placement of five million new shares at CHF 173.00 per share with total gross proceeds of CHF 865 million, which was completed in February 2017, as well as the issuance of 16,548,612 fully paid registered shares, with gross proceeds in the amount of CHF 2.26 billion, which was completed in May 2017. The balance of the acquisition price was financed through indebtedness.