Lonza sells capsules business to Lone Star for $3.0bn

Lonza, a Swiss contract drug manufacturer, will sell its capsules and health ingredients business to US-based private equity firm Lone Star Funds for an enterprise value of 2.3 billion Swiss francs ($3.0 billion/€2.8 billion/£2.4 billion). The company has been seeking to exit the business since December 2024 with an aim to focus solely on its core contract drug manufacturing offering.

Reuters reported that Lonza will receive upfront proceeds of 1.7 billion Swiss francs ($2.2 billion/€2.1 billion/£1.7 billion) and retain a 40 per cent stake in the business. Total undiscounted proceeds are expected to be at or above 3 billion Swiss francs ($3.9 billion/€3.6 billion/£3.1 billion).

The transaction represents a significant divestment by Lonza as it streamlines operations to concentrate on pharmaceutical contract manufacturing services. The capsules and health ingredients business includes manufacturing capabilities for pharmaceutical capsules and nutritional health ingredients used across the healthcare and wellness sectors.

Lone Star Funds, a global private equity firm, is acquiring the business as part of its healthcare and life sciences investment strategy. The firm manages investments across multiple sectors including healthcare services, pharmaceuticals and medical devices.

The sale enables Lonza to sharpen its strategic focus on contract development and manufacturing organisation services for the pharmaceutical and biotechnology industries. Contract drug manufacturing has become an increasingly important segment as pharmaceutical companies outsource production to specialist manufacturers.

The transaction is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions. Lonza's decision to retain a 40 per cent stake suggests continued interest in the business's performance whilst allowing majority control to transfer to Lone Star.

View the complete announcement for details on business operations and strategic rationale behind the sale.