WASHINGTON (dpa-AFX) - Lonza signed an agreement to divest its Capsules & Health Ingredients or CHI business to Lone Star Funds for an enterprise value of CHF 2.3 billion or US$3 billion. This transaction represents the final and most significant step in Lonza's strategic portfolio transformation into a pure-play Contract Development and Manufacturing Organization or CDMO.
Under the agreement, Lonza will receive upfront proceeds of CHF 1.7 billion or US$2.2 billion and retain a 40% stake in CHI, with preferential participation in a future exit. The total undiscounted proceeds, including upfront and future exit-related returns, are expected to be at or above CHF 3 billion or about US$4 billion. Lonza plans to allocate the upfront proceeds toward organic growth opportunities, bolt-on acquisitions, and a CHF 500 million share buyback program.
The company noted that the divestment delivers on commitments made at its December 2024 Investor Update as part of the One Lonza Strategy, focusing on high-value creation within its CDMO business. The company now operates across three complementary and integrated CDMO platforms, powered by the Lonza Engine, leveraging advanced science, smart technology, and lean manufacturing for complex pharmaceutical modalities.
As part of its wider portfolio transformation, Lonza has also signed agreements to divest its Personalized Medicines business (including the Cocoon Platform), the MODA software platform, and the small molecules micronization site in Monteggio (CH). These moves further streamline Lonza's focus on expanding margins and sustainable growth in its CDMO operations.
The transaction is expected to close in the second half of 2026, subject to customary regulatory approvals and completion of the legal separation of CHI from Lonza's wider business.
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