Lone Star Funds to acquire Lonza’s Capsules & Health Ingredients

Lone Star Funds has entered into a definitive agreement to acquire the Capsules & Health Ingredients (CHI) division of Lonza Group under the affiliate Lone Star Fund XII, L.P. No financial details have been disclosed. Lonza will retain a 40% equity position in the business. 

“We see significant opportunity for CHI as a standalone business,” says Donald Quintin, CEO of Lone Star. “The company has leading positions, a global footprint, and a strong heritage of product quality and innovation.”

CHI specializations

CHI is headquartered in Basel, Switzerland, operating across the Americas, Europe, and Asia-Pacific. 

The business is divided into three segments. Under Hard Empty Capsules, the manufacturer makes gelatin and plant-based capsules for pharmaceutical and nutraceutical customers. 

The second, Dosage Form Solutions, provides end-to-end services in these sectors, from development to manufacturing. And Health Ingredients makes branded, science-verified nutrition ingredients for joint health, energy, and active lifestyle markets.

Quintin comments: “We believe that, as an independent operator, CHI will benefit from greater strategic flexibility and dedicated investment to accelerate growth, enhance operational performance, and continue delivering value to customers worldwide.”

“We look forward to partnering with the CHI team and Lonza as we look to drive the company forward together.”

Lone Star says CHI is a high-quality global platform with robust technical capabilities, differentiated product offerings, and strong customer relationships. With the business move, CHI will improve operational focus, invest more in innovation, and strive for growth initiatives across the three segments.

Nutrition Insight previously met with Lonza CHI to explore how innovations in format design, ingredient stability demands, and a stronger focus on consumer experience are becoming essential in the next generation of supplements.

The company also told us about its fully plant-based organic capsule with powerful oxygen-barrier properties and how its technologies enhance ingredient bioavailability to meet consumer demands for efficacy or add scents and smells to capsules to make them more enjoyable.

Market potential

Additionally, Lone Star sees potential to benefit from CHI’s target markets in joint health, energy, and active lifestyle, which are showing strong demand and driving growth.

Innova Market Insights data shows a 5% global increase in sports nutrition product launches from April 2020 to March 2025. There is also a 7% compound annual growth rate in sports nutrition launches between July 2020 and June 2025.

For vitamins/minerals, Innova data indicates 11% average annual growth in launches from July 2020 to June 2025, mainly targeting energy and immunity claims. 

Meanwhile, with type II collagen ingredients increasing by 25% year-over-year, according to Innova data, there is an opportunity for collagen II matrix formulations in NPD, with a special focus not only on joint health but also on beauty applications.