The chemicals giant has sold the business unit to Bain Capital and Cinven for CHF4.2bn
Swiss chemicals company Lonza has agreed to divest its Specialty Ingredients business to private equity firms Bain Capital and Cinven.
The deal, worth CHF4.2bn, is said to be “the result of a comprehensive and robust selection process”, according to Lonza Chairman Albert M Baehny.
The business segment in question includes microbial control solutions for personal care and professional hygiene products, and the move is expected to allow Lonza to refocus its efforts towards the health care industry.
Lonza’s Specialty Ingredients business operates across 17 manufacturing sites globally and has approximately 2,800 permanent employees.
Commenting on the sale, Baehny added: “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 prioritise R&D and innovation, as well as to invest in existing facilities to unlock the potential of the business.
“The sale of the Specialty Ingredients business will allow Lonza to focus on its position as a leading partner to the health care industry, and the free cash flows resulting from the sale will allow us to accelerate our strategic priorities.
“We look forward to continuing to collaborate with Bain Capital and Cinven to ensure a seamless transition for customers and employees.”
The transaction is expected to close in H2 2021, subject to customary closing conditions.