#capsugel

So I spent a few minutes on the phone with Pete Stavros, a KKR director who worked on the deal:

Fortune: Capsugel sales were off around 4% in 2009, and then up just 1.3% last year. Why has growth been so slow?

Stavros: I don't know what Pfizer has disclosed, but Capsugel's growth has been very steadily upwards for the entire period Pfizer has owned it. But, yes, there has been about two years of sideways movement in revenue, which was largely due to a downturn in the dietary supplement market, due to the tough economy.

So what's the investment thesis?

Growth in this business is driven by exposure to emerging markets, and we'd plan to keep expanding that. One of the neat things about this company is that it's very diversified already in terms of geography, with a significant presence in Latin America, China and the Middle East. In many of those regions there is an increasing use of pharmaceutical and dietary products, so we see a long-term secular uplift from that.

Capsugel Sale Benefits Employees, Too

In 2011, KKR saw promise in Capsugel, a drug capsule manufacturing company, and purchased it from Pfizer for about $2.4 billion. After significant financial success, KKR sold Capsugel to the Swedish firm Lonza for $5.5 billion. But the story doesn’t end there. As part of the sale, $35 million of the proceeds were distributed to non-management employees. KKR has instigated this model at several of…

Lonza completes acquisition of Capsugel for $5.5 bn in cash

BASEL, SWITZERLAND: Lonza Group has completed the acquisition of Capsugel SA (Capsugel) from KKR & Co, for $5.5 billion in cash, including refinancing of existing Capsugel debt of approximately $2 billion.

The acquisition of Capsugel, a world leader in advanced oral dosage delivery technologies with a leading position in hard capsules, is expected to be accretive to Lonza’s core earnings per share in the first full year post closing.

This acquisition is in line with Lonza’s stated strategy to accelerate growth and deliver value along the healthcare continuum by complementing its existing offerings and by opening up new market opportunities in the pharma and consumer healthcare and nutrition industries.

With the acquisition of Capsugel, Lonza adds a trusted brand with a large breadth of technologies that it believes will expand the market reach of both companies’ contract development and manufacturing organisation (CDMO) and products businesses. It also supports Lonza’s strategic ambition of getting closer to the patient and the end consumer.

“Lonza and Capsugel have a highly synergistic customer base and market approach, complementary business models and closely aligned corporate cultures with a strong commitment to ethics and compliance. All of these aspects will facilitate a seamless integration,” said Richard Ridinger, CEO, Lonza.

Lonza Buys Capsugel in $5.5 Billion Health Care Deal

Dec 15, 2016

Lonza has declared that it will buy private-equity backed U.S. capsule maker Capsugel in a $5.5 billion all-cash deal. This will push the Swiss biotech group further into the health care industry.

Lonza will buy Capsugel via a combination of debt and equity financing and will assume around $2 billion in Capsugel debt. Lonza said the acquisition will add $30 million in annual…

@LonzaGroup is in advanced talks to acquire #Capsugel for more than $5 billion @CapsugelNews

News Hour:

Swiss pharmaceutical manufacturer Lonza Group AG is in advanced talks to acquire Capsugel, a U.S. maker of capsule products and other drug delivery systems, for more than $5 billion, according to people familiar with the matter.

The deal would come as Lonza seeks to boost its life sciences capabilities and produce a wider range of molecules used in active pharmaceutical ingredients…

Capsugel Expanding Pharmaceutical Product Development and Manufacturing Capabilities at its Edinburgh Facility

Morristown, N.J., and Edinburgh, Scotland (PRWEB) July 23, 2015

Capsugel, a global leader in delivering high-quality, innovative dosage forms and solutions, today announced a major expansion of its facility in Edinburgh, Scotland, to meet rising customer demand for its specialized pharmaceutical…