Lonza has signed a definitive agreement to acquire five CDMO manufacturing sites in the US from Merck KGaA, Darmstadt, Germany, at a total enterprise valuation in the low- to mid-triple-digit millions Swiss francs. The deal more than doubles Lonza's US CDMO footprint from four to nine sites.
The acquisition includes sites in St. Louis, Missouri (bioconjugates); Madison and Verona, Wisconsin (high-potency payload-linkers); Carlsbad, California (end-to-end viral vector solutions, including aseptic fill-finish); and Indianapolis, Indiana (lipid nanoparticle, liposome and PEGylated protein solutions, including aseptic fill-finish). Approximately 1,100 employees will join Lonza, raising its US workforce to more than 6,000.
The acquired network supports customers from clinical development through commercial manufacturing in areas including antibody-drug conjugates and other bioconjugates, viral vectors for cell and gene therapies, and advanced drug-delivery technologies.
In full-year 2028, the acquired sites are expected to contribute around CHF 250 million in sales at a CORE EBITDA margin below Lonza's. Once integrated, the sites are expected to deliver profitable growth using existing available capacities and additional expansion space, with peak sales at Lonza's future group margin level expected by the mid-2030s.
Lonza CEO Wolfgang Wienand said the acquisition reflects the company's disciplined approach to capital allocation and will increase the resilience of its global manufacturing network. Merck KGaA's Kai Beckmann said a more concentrated Life Science portfolio will allow the company to focus investments on building scientific leadership.
The consideration will be paid in cash and funded with cash at hand and existing credit facilities. Closing is expected mid-2027, subject to customary closing conditions.