Sector News

Lonza shortlists bidders for $4 billion specialty ingredients arm

December 13, 2020
Chemical Value Chain

Lonza Group AG has narrowed the list of bidders for its specialty ingredients unit, one of the European chemical industry’s most hotly-contested sale processes, people with knowledge of the matter said.

The Swiss company invited suitors including Carlyle Group Inc. and Bain Capital’s consortium with Cinven to make second-round offers, according to the people. Lone Star Funds and Partners Group Holding AG have also progressed to the next round of bidding for the Lonza business, the people said, asking not to be identified because the information is private.

Blackstone Group Inc., CVC Capital Partners and Clayton Dubilier & Rice are no longer in the running, the people said. The unit, which also attracted interest from Advent International and German chemicals group Lanxess AG, could fetch around 3.5 billion Swiss francs ($3.9 billion), Bloomberg News has reported.

The Lonza business manufactures chemicals for use in everything from paints to crop protection. Its microbial control solutions are also used in professional cleaning products and sanitizers, which have attracted strong demand amid the coronavirus pandemic.

Shares of Lonza have risen 54% in Zurich trading this year, giving the company a market value of about 40.6 billion francs. No final decisions have been made, and there’s no certainty the bidders will proceed with binding offers, the people said.

Representatives for Bain, Blackstone, Carlyle, CD&R, Cinven, CVC, Lone Star, Lonza and Partners declined to comment.

By Myriam Balezou, Dinesh Nair, and Jan-Henrik Foerster

Source: bloomberg.com

comments closed

Related News

October 17, 2021

Sidel overcomes COVID-19 travel restrictions with remote bottle line tuning in Guinea

Chemical Value Chain

Sidel has remotely assisted Nouvelle Brasserie de Guinée (Braguinée) with the tuning of a 1 L bottle line in Guinea. Braguinée is expanding its carbonated soft drink large format production to meet the growing demand for home consumption

October 17, 2021

Dutch PPE Solutions reduces climate impact of meltblown fibres production by using Borealis Bornewables™

Chemical Value Chain

Dutch PPE Solutions, a joint venture of VDL Groep and Royal DSM, has been able to produce carbon neutral meltblown fabric. Bornewables PP is made from bio-based feedstock derived entirely from waste and residue streams and has ISCC PLUS certification. Borealis is providing Dutch PPE Solutions with renewable PP from its , supporting them in reducing the climate impact of meltblown production.

October 17, 2021

Contract of Covestro CCO Sucheta Govil extended ahead of schedule

Chemical Value Chain

The Supervisory Board of Covestro AG has prematurely extended the contract of Board of Management member Sucheta Govil, which runs until July 2022, by three years from August 1, 2022, to July 31, 2025. Govil has been a member of the Management Board of Covestro since August 2019.

Send this to a friend