Bain Capital and Cinven Partners acquisition of Lonza Specialty Ingredients led by AZB & Partners
Bain Capital and Cinven Partners have agreed to acquire Lonza Specialty Ingredients (LSI), from Lonza Group Limited, for an enterprise value of CHF 4.2 bn (approx. USD 4.7 billion).
The transaction forms part of the divestment strategy and will allow Lonza to focus on the healthcare business.
The transaction will help LSI to benefit from the resources and expertise of Bain and Cinven, invest further in research and development, innovation, and expansion.
Headquartered in Basel, Switzerland Lonza Specialty Ingredients is a provider of specialty chemicals for microbial control solutions, used to eliminate or control harmful and unwanted micro-organisms. The products are used in disinfectants, preservatives, sanitizers, personal care products, as well as coatings and other industrial uses.
It operates through two businesses, Microbial Control Solutions and Specialty Chemical Services.
In a Press Release by Bain Capital, Pontus Pettersson, Partner at Cinven, was quoted as saying, "Cinven and Bain Capital are delighted to invest in LSI, as a global leader in a specialty chemicals category that serves a critical need for society, across a broad range of end-markets."
Also, in the Press Release, David Danon, Managing Director at Bain Capital stated, "LSI has multiple attractive growth opportunities as the leading global player in the growing market for microbial control. Our strategy is to reinforce the company's market position, to accelerate growth through further investment in R&D and innovation, and to use LSI as a platform for further industry consolidation, in line with Bain Capital's and Cinven's strategies in other sectors."
AZB & Partners advised Bain Capital and Cinven Partners in the transaction. The AZB & Partners team comprised of Partners – Anil Kasturi and Nandita Govind and Senior Associate – Shreya Basu.