Beacon Transcript – Lonza Group is reportedly in the advanced stage talks for an acquisition deal targeting Capsugel, the United States drug delivery systems company.
The Lonza Group is a Basel, Switzerland-based multinational company. Specialized in biotechnology and chemicals, the company has spread and reached a global coverage.
The multinational is targeting to offer product development services for the biologic and pharmaceutical industries.
Capsugel is a United States-based company. Specialized in the manufacturing and sale of drug capsules, it also offers various other services. These services include filling and sealing equipment for empty and liquid capsules.
Initially founded in 1931 as a Parke-Davis subdivision, Capsugel has had several owners. It is currently owned by Kohlberg Kravis Roberts.
The global investment firm bought the drug capsules producer back in 2011 in a $2.38 billion sales deal with Pfizer.
Morristown-based Capsugel has quite an outreach area of its own. It produces finished dosage forms and empty two-piece hard capsules ready for drug delivery. It currently serves an estimated number of 4,000 corporate customers spread throughout more than 100 countries.
Reports released earlier this year seemed to suggest that KKR was targeting either a possible sale of the company or an initial public offering.
Now, Capsugel will reportedly be passed on to another ownership. Sources familiar with the matter stated that Lonza is seeking to acquire the capsule producer.
The reported sales value could come to be of around $5 billion, according to the said reports.
Lonza would benefit from the acquisition as it could grow its life sciences sector. As such, it would be able to produce a wider range of products in the molecules area.
These would then be used in drug delivery and as active pharmaceutical ingredients. Lonza is not at its first try to acquire a drug delivery company.
Earlier this year, the Swiss company was reportedly in talks with the United States-based such company, Catalent. However, the respective acquisition talks fell through.
Reports state that current discussion between Lonza and the Capsugel mother company could lead to a final deal quite soon.
As such, KKR & Co., and the Swiss company could reach a Capsugel-related final deal as soon as this week.
However, according to the same sources, which released the information on Sunday, the deal could still fall through.
The reported sources asked to not be revealed as the talks are currently still confidential. Neither Lonza nor Capsugel or KKR representatives did not immediately release statements about the sales claims.
As an official statement is yet to be released, it remains to be seen if the news will be confirmed or if the sale will come to pass.
The Lonza Group has already been expanding its United States outreach. Over the past few years, the firm has acquired a number of small biopharmaceutical companies.
Back in 2011, it also acquired Arch Chemicals, the chemical maker company in a $1.4 billion. Lonza’s market capitalization is placed at $9.25 billion or 9.4 billion Swiss Francs.
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