Lone Star Funds, Altaris LLC, and One Rock Capital Partners have emerged as leading contenders in the second round of bidding for Lonza Group AG’s capsules and health ingredients unit, according to a report by Bloomberg citing sources familiar with the matter.
Additional bidders may still enter the process, which is ongoing.
The Swiss contract manufacturer is preparing the business for a potential sale, with internal carve-out measures well underway. Bank of America and Centerview Partners are advising Lonza on the transaction, which could value the unit at around €2.5bn ($2.9bn).
Lonza acquired the capsules business, known as CHI, from KKR in 2017 for $5.5bn, but CEO Wolfgang Wienand has signalled that the unit no longer fits the company’s strategy as a pure-play contract development and manufacturing organisation. The sale aligns with Lonza’s broader effort to streamline operations and sharpen its focus on high-growth biologics and monoclonal antibody production.
Shares in Lonza have remained broadly flat this year, valuing the company at approximately $46bn. The sale represents a major opportunity for private equity buyers to acquire a high-quality health ingredients platform with established operations and potential for further growth.
