News Article

Listed Swiss life sciences company Lonza Group has reached a definitive agreement to sell a sixty percent stake in its Capsules and Health Ingredients (CHI) division to private equity firm Lone Star Funds.

The transaction values the unit at an enterprise value of 2.3bn Swiss francs, or approximately $3bn, representing an 8.5x enterprise value to EBITDA multiple on 2025 results.

The deal is expected to close in the second half of 2026. Under the terms of the agreement, Lonza will receive 1.7bn francs in upfront cash while retaining a forty percent equity position. This structure allows Lonza to secure immediate capital while maintaining preferential participation in a future exit.

Management projects that the total undiscounted value of the divestment, including the future sale of its retained stake, will ultimately reach or exceed 3bn francs. To reward shareholders, Lonza will deploy 500 million francs of the upfront proceeds toward a share buyback.

For Lonza, the divestment marks the final step in a multi-year strategy to become a pure-play contract development and manufacturing organisation. The remaining cash proceeds will become part of a discretionary pool to fund organic growth projects and bolt-on acquisitions aimed at expanding complex biologics capacity and capabilities.

As a result of the carve-out, Lonza will recognize a 1.3bn franc non-cash impairment charge in its 2025 financial statements, primarily related to goodwill.

From an operational perspective, Lone Star views the acquired division as an attractive standalone platform with a strong global footprint in pharmaceutical and nutraceutical capsules. The private equity firm plans to provide dedicated investment to enhance the unit’s operational focus and accelerate strategic growth initiatives across its core markets.