Lonza Closes InterHealth Nutraceuticals Buy

13 Sep 2016 --- Lonza has announced that it has closed the acquisition of InterHealth Nutraceuticals. The ingredients company, who lead in research, development and the manufacturing and marketing of nutritional ingredients for use in dietary supplements were bought for USD 300 million.

The InterHealth business will become part of Lonza’s Consumer Care Business Unit, but will retain its own facilities and employees.

Dominik Werner, Head of Corporate Communications for Lonza told NutritionInsight, "This transaction will add substantial incremental revenues to our nutritional ingredient business. InterHealth will strengthen our market position, particularly in the dietary supplement area. In the mid-term, we also see a positive impact in food & beverage since many of their ingredients can potentially be applied in this space, too."

The collaboration between the two businesses will allow Lonza to offer its clients more than 15 branded ingredients from InterHealth.

"InterHealth is focused on providing products with research-backed benefits for joint health, sports nutrition, weight management, cardiovascular health, blood-sugar control and mood health," Werner continued, "For example, InterHealth has developed a unique ingredient (UC-II) that has the potential to revolutionize the joint health area."

As one of the world’s leading suppliers to the pharmaceutical, biotech and specialty ingredients markets, the acquisition of InterHealth is sure to enhance Lonza's offering in the ingredients sector.

There are also hopes that the collaboration will re-energize the way the company works.

"We believe that both teams will inspire each other," stated Werner, "For example, we expect that InterHealth’s entrepreneurial spirit will find entrance into Lonza’s culture."

"That valuable entrepreneurial spirit is clearly in evidence within InterHealth’s experienced management team. They have a strong track record in developing and growing nutritional ingredients and demonstrate excellent expertise in scientific marketing and branding."

Lonza acquired InterHealth for a total transaction price of up to USD 300 million split into an upfront payment and an earn-out payment. The transaction is expected to be immediately accretive to Lonza’s earnings, and the company has high hopes for the future.

"This acquisition aligns closely with our focus on expanding our offerings along the healthcare continuum," explained Werner.

"Both teams will support each other in their specific area of expertise and core business. For example, Lonza’s sales force will be instrumental in leveraging Interhealth’s business to other geographies beyond North America."

"We expect strong growth as the synergy effects of larger commercial network and combined go-to-market efforts are implemented."

by Hannah Gardiner