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Swiss Lonza to buy US capsule maker Capsugel from KKR for $5.5 billion


Swiss pharmaceutical manufacturer Lonza Group AG said it agreed to buy Capsugel, a New Jersey-based maker of capsule drug delivery systems, from private equity firm KKR & Co. for $5.5 billion – in cash .

In a press release Thursday, Lonza and Capsugel said the deal includes refinancing of existing Capsugel debt of about $2 billion.

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The deal is expected to close in the second quarter of 2017.

“The acquisition of Capsugel meets Lonza’s strategic and financial goals, ” Lonza Chief Executive Richard Ridinger said in a statement. It accelerates our healthcare continuum strategy by giving us broader exposure to the fast-growing pharma and consumer healthcare markets.”

Lonza said it intended to raise new capital of up to 3.3 billion Swiss francs ($3.22 billion) to finance the deal.

Capsugel manufactures empty two-piece hard capsules as well as finished dosage forms for drug delivery. It serves more than 4, 000 corporate customers in over 100 countries and employs approximately 3, 600 people across 13 facilities on three continents.

The Swiss group said it expected to achieve 30 million francs of yearly operating synergies by the third year and 15 million francs in yearly tax synergies.



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