Lonza Group will acquire capsule manufacturer and CDMO Capsugel from KKR for $5.5 billion, the company has announced. The deal has been approved by the boards of both companies and is expected to close by mid-2017.
KKR acquired Capsugel from Pfizer in 2011 for a little less than $2.4 billion.
Capsugel manufactures capsules for DPIs and offers development and manufacturing services for DPI from early development through to commercialization. In 2013, Capsugel acquired spray drying specialists Bend Research, which expanded its OINDP services.
Lonza CEO Richard Ridinger said, “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. We expect the transaction to be accretive to our core earnings per share in the first full year post closing. 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. The combined business will allow us to partner with our customers to help them bring highly differentiated products to market more quickly and efficiently.”
Capsugel President and CEO Guido Driesen commented, “This transaction brings together two leading companies that share a common vision – to deliver real value to customers by accelerating their ability to develop and commercialize innovative pharmaceutical and healthcare products. The combination of our complementary technology platforms will put us in a strong position to benefit from evolving trends in the pharma and consumer healthcare markets.”
Read the Lonza press release.
