Lonza divests water business in US$630m deal to focus on growth of healthcare business
01 Nov 2018 --- Lonza has sold its Water Care business to Platinum Equity in a US$630 million deal. The move allows Lonza to focus on its healthcare continuum strategy, which includes patient healthcare, consumer preventive healthcare and consumer's healthy environment. The company posted strong Q3 results last week across the Healthcare Continuum. In the first half of this year, Lonza reported strong momentum with organic growth of 8 percent (like-for-like) sales and 11 percent CORE EBITDA. The company’s businesses along the healthcare continuum achieved double-digit organic sales growth.
Lonza acquired the Water Care business as part of its acquisition of Arch Chemicals in 2011 and developed it as part of the Specialty Ingredients segment. The business provides offerings for recreational water, as well as for industrial, municipal, commercial and surface water treatments.
“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. We believe that we have found the optimal partner for the business to give new perspectives to the global sites and its employees,” says Richard Ridinger, CEO of Lonza.
“The divestment further strengthens our strategic focus on our three core pillars – Pharma & Biotech, Consumer Health and Consumer & Resources Protection – within the healthcare continuum,” he adds.
Lonza announced in May this year that it had retained an investment bank to advise on all strategic options regarding its Water Care business as part of an active portfolio management approach. The strategic review was publicly confirmed at Lonza's Capital Markets Day in September 2018.
“After a robust analysis of options, the Executive Committee decided to divest the Water Care business. This decision was part of our long-term strategy to grow sustainably along the healthcare continuum and to focus all growth initiatives and investments on our core businesses,” a Lonza spokesperson tells NutritionInsight.
The spokesperson adds that the company will focus on growing sustainably in the healthcare continuum, spanning the fields of prescription, prevention, protection and preservation.
By Laxmi Haigh
