VIENNA (dpa-AFX) - Lonza Group AG (LZAGF.PK), KKR and Capsugel S.A. announced an agreement under which Lonza will acquire Capsugel from KKR for $5.5 billion in cash, including refinancing of existing Capsugel debt of approximately $2 billion. Lonza anticipates that the transaction will be accretive to its core earnings per share from the first full year post closing onwards and intends to retain its current dividend policy.
Lonza said the transaction will be financed with a combination of debt and equity financing. The company has committed debt financing for the full acquisition amount from BofA Merrill Lynch and UBS and plans to raise equity, which is fully underwritten by UBS and BofA Merrill Lynch for an amount up to 3.3 billion Swiss franc.
Capsugel designs, develops and manufactures a wide range of innovative dosage forms for the biopharmaceutical and consumer health and nutrition industries. Capsugel has approximately 3,600 employees and 13 facilities on three continents.
Lonza Group said the enlarged business would have had combined 2015 revenues of approximately 4.8 billion franc and adjusted EBITDA of approximately 1.1 billion franc. Lonza expects to achieve operating synergies of approximately 30 million franc per annum, which are expected to be fully realized by year three, in the areas of corporate, procurement and IT, as well as various efficiency gains. In addition, tax synergies of approximately 15 million franc per annum are expected.
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