Lonza is significantly expanding its contract manufacturing operations for the pharmaceutical industry in the US
Keystone-SDA
The Swiss life sciences group Lonza is significantly expanding its presence in the United States. It is acquiring five plants from the German Merck Group.
With this transaction, the pharmaceutical supplier is doubling its US presence from four to nine CDMO sites, the company announced on Tuesday. CDMO stands for contract development and manufacturing organisation and refers to contract development and manufacturing for pharmaceutical companies.
The company emphasises that the US is the largest market for innovative pharmaceutical products. The acquired network supports customers from the clinical phase through to commercial launch in promising growth areas.
According to the announcement, around 1,100 employees are moving to Lonza, bringing the total number of staff in the US to more than 6,000. The purchase price is based on a company valuation in the low to mid three-digit millions in Swiss francs.
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CHF250 million in turnover
In the 2028 financial year, the acquired businesses are expected to contribute around CHF250 million ($305 million) in revenue. The core EBITDA margin will initially be below Lonza’s level, but this is expected to change over time. The active ingredient manufacturer has therefore confirmed not only its outlook for 2026 but also its medium-term financial targets.
The acquired sites are located in St Louis, Missouri; Madison and Verona, Wisconsin; Carlsbad, California; and Indianapolis, Indiana. The acquisition will be paid for in cash from existing funds and credit facilities. The transaction is scheduled to be completed in mid-2027 and is subject to customary conditions precedent.
It was also emphasised that the announced share buyback following the sale of the capsules and health ingredients business remains unaffected by this.
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Translated from German, reviewed by an English Department journalist.
