Lonza Group AG has agreed to sell its Capsules & Health Ingredients (CHI) division to an affiliate of Lone Star Fund XII, L.P., marking a strategic shift that will position the business as a standalone global platform focused on pharmaceutical, nutraceutical and nutrition ingredient markets. As part of the transaction, Lonza will retain a 40% equity stake in the business. Financial terms of the deal were not disclosed.
Headquartered in Basel, Switzerland, the CHI division operates across the Americas, Europe and Asia Pacific and is organized into three core segments: Hard Empty Capsules, Dosage Form Solutions and Health Ingredients. The Hard Empty Capsules segment manufactures gelatin and plant-based capsules used in pharmaceutical and nutraceutical products. Dosage Form Solutions provides development and manufacturing services for customers in both the nutraceutical and pharmaceutical industries. The Health Ingredients segment supplies branded, science-backed nutrition ingredients targeting areas such as joint health, energy, and active lifestyle markets.
Lone Star said the business represents a strong global platform with differentiated capabilities and established customer relationships. The investment firm believes that operating as an independent company will allow CHI to enhance operational focus, invest further in innovation and pursue growth initiatives across its segments. The firm also highlighted favorable demand trends in the pharmaceutical, nutraceutical and nutrition markets served by the business.
Lonza will remain a strategic partner through its retained minority stake, while Lone Star will work with the management team to accelerate operational performance and growth. The transaction remains subject to customary closing conditions and regulatory approvals.
KEY QUOTE:
“We see significant opportunity for CHI as a standalone business. The company has leading positions, a global footprint and a strong heritage of product quality and innovation. We believe that, as an independent operator, CHI will benefit from greater strategic flexibility and dedicated investment to accelerate growth, enhance operational performance and continue delivering value to customers worldwide. We look forward to partnering with the CHI team and Lonza as we look to drive the company forward together.”
Donald Quintin, Chief Executive Officer, Lone Star
