Lonza to Offload Majority Stake in Capsule Business to Lone Star in $2.2 Billion Deal
By Joshua Kirby
Lonza is to sell a majority stake in its capsule and health-ingredients business to private-equity firm Lone Star Funds for 1.7 billion Swiss francs ($2.18 billion).
The divestment will allow the Swiss healthcare manufacturer to focus on its core business, it said in a release Friday. Lonza more than a year ago signaled it would streamline its business with a focus on drug development, a strategy it said would involve divesting the CHI business.
Lonza will retain a 40% stake in the CHI division in the deal, which gives the business an enterprise value of 2.3 billion francs. Lonza will also have preferential participation in a future exit from the remaining stake, subject to Lone Star netting a return equal to its initial investment.
"The transaction is the last and most significant step to complete Lonza's strategic portfolio transformation to a pure-play contract-development and manufacturing organization," the company said.
The proceeds will be invested in the main CDMO business, Chief Executive Wolfgang Wienand said.
"We are now able to laser-focus on where we are strongest and can create most value for our customers," Wienand said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
March 06, 2026 12:44 ET (17:44 GMT)
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