On Thursday, December 15, Lonza Group AG and Capsugel announced that the two companies have entered into a definitive agreement, under which Lonza will acquire Capsugel from KKR for $5.5 billion in cash (including refinancing an existing Capsugel debt of approximately $2 billion).
A Capsugel spokesperson participated in a brief Q&A with Pharmaceutical Processing on this new development.
Q: What are the next steps in the acquisition, and when will the acquisition be finalized?
A: The Boards of Directors of Lonza and Capsugel have approved the transaction. The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to close in the second quarter of 2017.
Q: Will Capsugel retain its branding or be absorbed as part of Lonza?
A: We have only just announced the transaction and it is too early to comment on the specifics of the future integration of our two companies, which would only occur upon closing of the transaction.
Q: How do you foresee this acquisition positively impacting the pharmaceutical industry?
A: This transaction will address the needs of pharmaceutical customers for integrated, value-added solutions that accelerate drug and ingredient delivery to patients. The combined business will be well positioned to take advantage of dynamics in the biopharmaceutical industry and to anticipate and address technology trends to support the evolving needs of its customers.
Q: Do the Lonza/Capsugel teams have specific programs in mind to research following the acquisition?
A: We have only just announced the transaction and until closing, both companies must continue to operate as independent companies. As such, it is too early to comment on specific plans. What I can tell you is that Capsugel remains committed to providing high-quality products and technologies, and we are excited that Lonza shares this commitment to quality and innovation.
Q: In your opinion, what are some of the strategic advantages that Capsugel brings to the table in this acquisition?
A: The acquisition creates a leading integrated solutions provider for drug development, formulation, delivery technologies, and manufacturing for the pharma and consumer healthcare industries.
Q: According to the press release, the “bulk of the benefits resulting from the transaction will be gained from positive top-line and innovation synergies.” Could you elaborate on this further?
A: We have only just announced the transaction and it is too early to comment on the specifics of the future integration of or two companies, which would only occur upon closing of the transaction.
Lead image caption: Capsugel’s facilities in Edinburgh and Ploërmel design, develop and manufacture lipid-based formulations—a key component of Capsugel’s bioavailability enhancement offering—for the global pharmaceutical market.