Bain Capital and Cinven are acquiring Lonza’s Specialty Ingredients division in a deal worth $4.7 billion, the Swiss contract drug maker said.
The Bain-Cinven consortium had been listed with Germany’s Lanxess and buyout groups Advent, Carlyle and others as bidders for the unit that makes anti-dandruff shampoo ingredients, nutritional supplements for swine and microbial controls for wood and hygiene products.
Lonza, which said the enterprise value of the transaction is 4.2 billion Swiss francs ($4.7 billion), is doubling down on its accelerating drug business. Its customers include Moderna, which Lonza supplies with ingredients for its COVID-19 vaccine, and AstraZeneca, which hired the Swiss company to help make its COVID-19 antibody treatment.
“The sale of the Specialty Ingredients business will allow Lonza to focus on its position as a leading partner to the healthcare industry,” said Albert Baehny, Chairman in a statement.
“The free cash flows resulting from the sale will allow us to accelerate our strategic priorities,” he added.
(Edits by EP News Bureau)