Lonza Group Ltd., Basel, Switzerland, has agreed to divest its Specialty Ingredients business to Bain Capital and Cinven for CHF 4.2 billion (about US $4.68 billion). Lonza states that the divestment will allow it to refocus its business as a pure-play partner in the health care industry. Bain Capital, Boston, MA, and Cinven, London, England, are both private investment companies and have other investments in the industrials sector. The transaction is expected to be complete in the second half of 2021, and the focus of Lonza, Bain Capital, and Cinven is to smoothly transition employees and customers during the divestment.
Lonza’s Specialty Ingredients business has 17 manufacturing sites and 2,800 employees. It provides microbial control solutions for professional hygiene and personal care products along with specialty chemicals and composites for the electronics, aerospace, food, and agrochemical industries.
According to Albert M. Baehny, Lonza’s chairman, “Bain Capital and Cinven have shown they understand the value of the experience and expertise of our Specialty Ingredients employees. They presented the most compelling industrial strategy and vision for the business, they are also keen to prioritize research and development and innovation as well as to invest in existing facilities to unlock the potential of the business.” 4-21