Merger creates leading integrated solutions provider to the global pharma and consumer healthcare industries
Lonza has announced that, following the receipt of all required regulatory approvals, it has completed the acquisition of Capsugel SA from KKR for $5.5 billion in cash, including refinancing of existing Capsugel debt of approximately $2 billion.
The acquisition of Capsugel, a world leader in advanced oral dosage delivery technologies with a leading position in hard capsules, is expected to be accretive to Lonza’s core earnings per share in the first full year post closing.
This acquisition is in line with Lonza’s stated strategy to accelerate growth and deliver value along the healthcare continuum by complementing its existing offerings and by opening up new market opportunities in the pharma and consumer healthcare and nutrition industries.
With the acquisition of Capsugel, Lonza adds a trusted brand with a large breadth of technologies that it believes will expand the market reach of both companies’ contract development and manufacturing organisation (CDMO) and products businesses.
It also supports Lonza’s strategic ambition of getting closer to the patient and end consumer.
Richard Ridinger, Lonza's Chief Executive Officer, said: “Lonza and Capsugel have a highly synergistic customer base and market approach, complementary business models and closely aligned corporate cultures with a strong commitment to ethics and compliance. All of these aspects will facilitate a seamless integration.”
Capsugel’s business will continue to operate in its existing structure until the full integration has been completed.
The acquisition was financed partially through the net proceeds of the successful placement of five million new shares at CHF173.00 per share with total gross proceeds of CHF865 million, which was completed in February 2017, as well as the issuance of 16,548,612 fully paid registered shares, with gross proceeds in the amount of CHF2.26 billion, which was completed in May 2017.
The balance of the acquisition price was financed through indebtedness.