Pharma BD Deal Intelligence

Lonza Group AG / Capsugel S.A.

2016 · Acquisition/Merger · $5.5B · Complete

Strongly positive — critic reaction at announcement

WRONG BY 44 POINTS

Lonza integrated Capsugel well operationally, then spent 2024-2026 unwinding the entire rationale — selling the capsules business for roughly half what it paid, having concluded it was never a CDMO fit.

Full analysis, sources & comparables →

The coverage arc

Dec 15, 2016 Fierce Pharma Bullish

Industry consultant James Bruno of Chemical & Pharmaceutical Solutions told FiercePharma the deal creates 'a major addition to competitors to companies like…

Jan 15, 2017 Financier Worldwide Bullish

Financier Worldwide highlighted the deal's accretive nature, KKR's exit from a 2011 buyout (originally ~$2.4B from Pfizer), and the strategic rationale of…

Jul 06, 2017 Pharmaceutical Technology Bullish

Pharma Tech highlighted the closing as creating 'a leading integrated solutions provider' with combined offerings spanning microbial fermentation, mammalian…

Source summaries from our enrichment pipeline; follow links for originals.

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Lonza completed its acquisition of Capsugel S.A. from KKR for USD 5.5B in cash (including refinancing of ~$2B Capsugel debt), originally announced December 14, 2016 and closed July 6, 2017. The acquisition created a leading integrated CDMO solutions provider, combining Lonza's biologics/manufacturing capabilities with Capsugel's hard capsule and advanced oral delivery technologies.

Did it work? Outcome assessment

Strategic verdict

Failed to Achieve

Financial impact

Accretive

Assessment window: 5yr post-close.

Key facts

Announced Dec 14, 2016
Closed Jul 06, 2017
Deal value $5.5B
Deal type Acquisition/Merger
Therapeutic area Other
Indications Pharmaceutical formulation/CDMO services
Key assets Hard capsule and oral dosage delivery technology platform
Mechanism Hard capsule manufacturing and advanced oral dosage delivery technologies

Related deals — scored

Deal	Year	Value	Outcome
Lonza Group AG / Capsugel S.A. (this deal)	2016	$5.5B	44
Lonza Group AG / Cambrex Bioproducts and Biopharma businesses	2006	$460M	83
Lonza Group AG / Capsugel S.A. (KKR portfolio)	2016	$5.5B	39
Watson Pharmaceuticals (Actavis Inc.) / Actavis plc	2012	$5.9B	97
Kohlberg Kravis Roberts & Co. / PRA International (Genstar Capital)	2013	$1.3B	91
Stryker Corporation / MAKO Surgical Corp.	2013	$1.6B	91
Quintiles Transnational Holdings Inc. / IMS Health Holdings, Inc.	2016	$17.6B	91

Compare all 7 side-by-side →

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