Platinum Equity has entered into a definitive agreement to acquire Lonza’s Water Care business and operations for $630 million. The inclusion of the French business in the transaction is still under discussion.
With headquarters in Alpharetta, GA, Water Care has six manufacturing facilities in key regions, including North America, South America, EMEA, and South Africa, with sales locations in all regions globally and with approximately 1,200 employees.
The business provides water treatment products for residential pool care and serves high-growth industrial and municipal water care markets.
“We are putting the Water Care business in the hands of an experienced owner who will develop Water Care as a stand-alone business while focusing on innovation and further growth,” said Richard Ridinger, CEO of Lonza. “The divestment further strengthens our strategic focus on our three core pillars—Pharma & Biotech, Consumer Health, and Consumer & Resources Protection—within the healthcare continuum.”
Lonza had announced in May that it had retained an investment bank to advise on all strategic options regarding its Water Care business as part of an active portfolio management approach. The strategic review was publicly confirmed at Lonza’s Capital Markets Day in September.
Lonza acquired the Water Care business as part of its acquisition of Arch Chemicals in 2011 and developed it as part of the Specialty Ingredients segment.
Platinum Equity is a global private equity firm with approximately $13 billion of assets under management and a highly specialized focus on business operations. The firm has carve-out expertise, with experience acquiring and operating businesses that have been part of large corporate entities. Last month, the company completed a $2.1 billion acquisition of LifeScan from Johnson & Johnson.
Water Care’s business unit head Christian Wichert and his management team will continue to lead the business, according to Platinum Equity.
The agreement is expected to close in the first quarter of 2019, subject to customary closing conditions.
(Source: Lonza Group Ltd.)
