Private equity firm Lone Star Funds has agreed to acquire Lonza Group’s Capsules & Health Ingredients (CHI) division, valuing the business at SFr2.3bn ($3bn).
Lonza will retain a 40% stake in CHI and receive upfront cash proceeds of SFr1.7bn, alongside what it described in a press release as “additional preferential participation in its future exit.”
The company said it expects the undiscounted total value of its proceeds from the CHI exit to be “at or above” SFr3bn.
However, its ultimate proceeds from the sale will depend on Lone Star first achieving an initial return equal to its equity investment.
The Swiss group plans to use the funds to support organic growth initiatives and bolt-on acquisitions.
Lonza has been looking to exit CHI since 2024, when it set out its “One Lonza” strategy to concentrate on its core operations and transform into a pure-play contract development and manufacturing organisation (CDMO).
Lonza CEO Wolfgang Wienand said: “With the sale of CHI and the three other recent divestments, in less than two years we have reshaped our company and activated our vision of One Lonza as a pure-play CDMO.
“We are now able to laser-focus on where we are strongest and can create most value for our customers, people and shareholders. On top of receiving significant upfront proceeds for re-investment in our world-leading CDMO business, we have been able to implement attractive mechanisms for Lonza to benefit from future value creation by CHI.
“Following a rigorous process, we are confident that Lone Star brings the necessary capabilities to lead CHI into a good future and create opportunities for the colleagues departing from Lonza.”
Based in Basel, Switzerland, CHI operates across the Americas, Europe and Asia Pacific.
The business is organised into three segments: Hard Empty Capsules, Dosage Form Solutions and Health Ingredients.
Lone Star highlighted its plans to back CHI as an independent company.
Lone Star CEO Donald Quintin said: “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.”
The deal is due to complete in the second half of 2026, subject to regulatory clearances and completion of the legal separation of CHI from Lonza’s broader business.
