Lonza sells water care business for $630 mln
* Sells water care business to Platinum Equity
* Sale is part of strategy to focus on health care business
* Expects deal to close in Q1 2019
(Adds background, CEO comment)
ZURICH, Nov 1 (Reuters) - Lonza said on Thursday it
has struck a deal to sell its water care business to U.S.
investment company Platinum Equity for $630 million.
Lonza, which said it was selling the business as part of its
long-term strategy to focus on its health care business, expects
the deal to close in the first quarter of 2019. The inclusion of
the French business in this transaction is still under
The water treatment and residential swimming pool care
business has six manufacturing facilities, including North
America, South America, Europe and South Africa, with roughly
Lonza said in May that it had taken on an investment bank to
look at strategic options for the business that sells HTH brand
swimming pool products.
Lonza, a chemicals and drug ingredients maker has been
increasing its presence in the health care business, buying pill
capsule maker Capsugel for $5.5 billion in 2016.
That deal was designed to expand its range of services
beyond drug ingredient and production services the Basel company
has traditionally supplied.
"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," Lonza
Chief Executive Richard Ridinger said.
"The divestment further strengthens our strategic focus on
our three core pillars – Pharma & Biotech, Consumer Health and
Consumer & Resources Protection – within the healthcare
(Reporting by John Revill; Editing by Maria Sheahan)
First Published: 2018-11-01 08:20:00
Updated 2018-11-01 09:17:15
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