Lonza Seals CHF 2.3 Billion CHI Sale to Complete Shift to Pure-Play CDMO

Lonza Group Ltd ( (CH:LONN) ) just unveiled an update.

Lonza has agreed to sell its Capsules & Health Ingredients business to private equity firm Lone Star Funds for an enterprise value of CHF 2.3 billion, receiving CHF 1.7 billion in upfront cash while retaining a 40% stake and preferential participation in any future exit. The move caps a rapid portfolio reshaping that completes Lonza’s shift into a pure-play CDMO, enabling the group to concentrate capital on higher-growth contract manufacturing activities and reinforcing its One Lonza strategy.

Total undiscounted proceeds from the CHI exit are expected to reach at least CHF 3 billion, with Lonza planning to redeploy most of the funds into organic expansion and bolt-on acquisitions and to return CHF 500 million to shareholders via a buyback. Alongside smaller divestments in personalized medicines, software and micronization, the transaction simplifies Lonza’s structure, strengthens its balance sheet, and is expected to trigger a non-cash impairment of about CHF 1.3 billion allocated to discontinued operations without affecting core EBITDA of continuing businesses.

The most recent analyst rating on (CH:LONN) stock is a Buy with a CHF670.00 price target. To see the full list of analyst forecasts on Lonza Group Ltd stock, see the CH:LONN Stock Forecast page.

More about Lonza Group Ltd

Lonza Group is one of the world’s largest contract development and manufacturing organizations, serving the healthcare industry across five continents. The company works with pharmaceutical and biotechnology clients to turn innovative therapies into commercial products, generating CHF 6.5 billion in sales and CHF 2.1 billion in CORE EBITDA in 2025.

Average Trading Volume: 163,367

Technical Sentiment Signal: Hold

Current Market Cap: CHF35.07B

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