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Lonza to buy Capsugel for $5.5bn, no site divestitures planned

By Gareth MacDonald+

15-Dec-2016
Last updated on 15-Dec-2016 at 12:44 GMT2016-12-15T12:44:06Z

iStock/zneb076
iStock/zneb076

Lonza has agreed to buy US capsule manufacturer Capsugel for $5.5bn (€5.2bn) in cash in an acquisition the Swiss firm says will expand its drug delivery business and enable savings of CHF100m a year by 2019.

The takeover, which had been expected since Lonza confirmed its interest in the capsule firm on Monday , is expected to close in the second quarter of 2017.

Lonza expects to achieve operating synergies of CHF30m a year in three years, citing corporate, procurement and IT infrastructure as areas in which savings will be made.

The Swiss firm also predicted “tax synergies” of CHF15m a year and “efficiency gains.”

Lonza said: "The primary initial focus of this transaction is to ensure a seamless integration while continuing the strong growth trajectory of the Capsugel business.

"Lonza believes that the step-by-step integration will preserve the strong innovation culture and lead to a combined top-line synergy potential of around CHF100m per annum in the mid- to long-term."

Integration plan

A Lonza spokesman told us: "It’s expected that the two Capsugel business units, biopharmaceuticals and consumer health & nutrition, will report into both Lonza segments from closing: Biopharma into Pharma&Biotech, CH&N into Specialty Ingredients."

He also told us that: "We don’t foresee any site closing or divestitures."

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