Lonza Acquires Capsugel to Create Leading Integrated Solutions Provider to the Global Pharma and Consumer Healthcare Industries

Strategic Advantages

Lonza acquires Capsugel for USD 5.5 billion, including refinancing of existing Capsugel debt of USD ~2 billion
Acquisition is expected to accelerate Lonza’s growth and ability to deliver value along the healthcare continuum
Acquisition addresses needs of customers for integrated, value-added solutions that accelerate drug and ingredient delivery to patients and consumers
The combined portfolio offering will position Lonza as the development, formulation, delivery technology and manufacturing partner of choice for the pharma industry
Lonza will become a fully integrated solutions provider in oral delivery technologies and active ingredients to the consumer healthcare and nutrition markets

Financial Advantages

Lonza expects to achieve CHF ~30 million p.a. operating synergies and CHF ~15 million tax synergies p.a. by year three and CHF ~100 million p.a. top-line synergies in the mid- to long-term
Transaction is expected to be CORE EPS accretive in the first full year post closing
Capsugel’s profitable business model and robust cash generation expected to further enhance Lonza’s strong financial profile
Lonza intends to retain current dividend policy and maintain ~3x net debt/EBITDA leverage

The acquisition of Capsugel meets Lonza’s strategic and financial goals. It accelerates our healthcare continuum strategy by giving us broader exposure to the fast-growing pharma and consumer healthcare markets. This new integrated approach will benefit our customers, who will gain from the simplicity and efficiency of working with one company that can provide world-leading support from APIs to excipients and dosage forms.

Richard Ridinger, Lonza CEO