Powdersize, LLC

Lonza Completes Strategic Transformation with $3 Billion Divestment of Capsules & Health Ingredients Business

- Lonza has agreed to divest its Capsules & Health Ingredients business to Lone Star Funds for an enterprise value of CHF 2.3 billion ($3 billion), marking the final step in its transformation to a pure-play CDMO. - The company will receive CHF 1.7 billion ($2.2 billion) in upfront cash proceeds while retaining a 40% stake with preferential participation in future exit proceeds. - Total undiscounted value from the full CHI exit is expected to reach or exceed CHF 3 billion (~$4 billion), providing significant capital for reinvestment in CDMO operations. - Lonza plans to return CHF 500 million to shareholders through share buybacks and will focus its three complementary CDMO business platforms powered by the Lonza Engine.