Lonza has announced that it will divest its Capsules & Health Ingredients (CHI) business to Lone Star Funds ("Lone Star") for $3bn.
The company will retain a 40% stake in the business.
Lonza said that the transaction is the "final and most significant step" in its strategic portfolio transformation into a pure-play CDMO.
Lonza has announced the divestment of its Personalized Medicines business, selling the Cocoon Platform to Octane Medical Group, the MODA software platform to the parent company of STARLIMS Corporation and the micronisation site in Monteggio, Switzerland, to Microsize and Schedio Group.
Following these changes, Lonza will focus on three integrated CDMO business platforms, powered by the Lonza Engine, which leverages cutting-edge science, smart technology and lean manufacturing for advanced pharmaceutical modalities.
Wolfgang Wienand, CEO, Lonza, commented: "With the sale of CHI and the three other recent divestments, in less than two years, we have reshaped our company and activated our vision of One Lonza as a pure-play CDMO."
"We are now able to laser-focus on where we are strongest and can create the most value for our customers, people and shareholders. On top of receiving significant upfront proceeds for re-investment in our world-leading CDMO business, we have been able to implement attractive mechanisms for Lonza to benefit from future value creation by CHI."
Following a rigorous process, we are confident that Lone Star brings the necessary capabilities to lead CHI into a good future and create opportunities for the colleagues departing from Lonza.
"I thank the whole CHI team for their commitment to Lonza over many years and their continued support in the upcoming transition phase."
Lonza is moving forward with transactions that align with its December 2024 Investor Update, part of the One Lonza Strategy. This strategy emphasises high-value creation within its CDMO model, targeting low-double-digit sales growth and expanded margins while investing a significant percentage of sales.
Lone Star has a strong track record of enhancing portfolio companies such as CHI by empowering management and investing for future growth. They emphasise maintaining high service quality as a core strategy for CHI post-transaction.
The deal is expected to close in the second half of 2026, subject to regulatory approvals and the legal separation of CHI from Lonza’s broader operations.
As Lonza Capsugel moves into its next chapter with the forthcoming ownership change to Lone Star Funds, the company has reaffirmed its commitment to serving the nutraceutical and consumer health industries as a leading global partner.
The company added that, deepening its resolve to keeping customers one step ahead, its business focus and operational delivery "will continue uninterrupted."
An important milestone for Lonza Capsugel's evolution, it enters this transition from a position of operational strength, following recent investments that expanded global manufacturing capacity, boosted warehouse efficiency and enhanced development and commercial-scale capabilities across key regions.