Lonza Group AG, Basel, Switzerland
has entered an agreement to acquire Capsugel from the private equity group KKR
for $5.5 billion. The Boards of Directors of
both Lonza and Capsugel have approved
the transaction, which is expected to close
in the second quarter of 2017 and is subject to certain regulatory approvals and
other customary closing conditions.
Lonza said the acquisition is in line with
its 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.
The deal will expand the market reach of
Lonza’s contract development and manufacturing organization (CDMO) and products businesses. It will also support Lonza’s strategic ambition of getting closer to
the patient and end consumer.
The acquisition is designed to create a
leading integrated, value-added solutions
provider in drug development, formulation, delivery technologies and manufacturing for the global pharma and consumer healthcare industries. The combined
business will be positioned to benefit from
the dynamics in these industries and to
anticipate and address technology trends
in order to support the evolving needs of
its customers, the companies said.
Pfizer had previously sold Capsugel to
KKR for about $2.38 billion in April 2011.
Since that time Capsugel acquired a range
of companies, including Bend Research
Inc., which specializes in bioavailability
Powdersize, a contract manufacturer with
expertise in particle-size reduction and
control technologies, as well as other dos-
Ultimately, the acquisition is expected to
strengthen Lonza’s position in consumer
healthcare and nutrition as the company
becomes a fully integrated and innovative
service provider of active ingredients, oral
dosage forms, development services and
delivery technologies. As a result, Lonza
will be well positioned to meet the increasing need for optimized consumer
health and nutrition through a wide offering of next-generation dosage forms.
The combined business will also be able
to leverage its bioavailability technology to
create a new dietary ingredient-ready offering, as well as capitalize on its formulation expertise to develop new ingredients
and to market new combination products.
Offers Growth Opportunity
When a giant food company invests $32
million in a startup focusing on personalized
nutrition—as Campbell Soup Company recently has in Habit—it’s clear that“person-alization” has reached a tipping point.
As consumers increasingly turn to individually tailored diets, personalized nutrition is a key growth opportunity for food
and beverage companies.
“Personalization is about consumers
‘taking back control’,”said Julian Mellentin,
director of New Nutrition Business and au-
thor of a new report 10 Key Trends in Food,
Nutrition and Health 2017. “They want to
feel more empowered and confident to
create their own healthy eating patterns. It
goes hand-in-hand with growing aware-
ness that diet is a personal matter—and
it’s another stage in the long slow death of
‘one size fits all’dietary recommendations.”
Many consumers are embracing per-
sonalized services, such as wearable gad-
gets, providing guidelines based on their
weight, height, sleep pattern, heart rate
and activity. A smaller but growing num-
ber of consumers look for more in-depth
services, such as a genetic profile, or me-
tabolism and disease risk via DNA tests.
“The industry can tap into the personalization trend in three ways,” said Mr.
Mellentin. “First, smart companies will
create a portfolio of brands, made to meet
the needs of different consumer diets and
preferences. Second, they will invest in a
multi-platform approach, offering support
and tailored dietary advice. This means
partnering with entities providing advice
on diet planning or with fitness gadgets.
Finally, they should invest in e-commerce,
as it has proven to be a main route to
Personalized nutrition services also include tests for biomarkers for chronic inflammation, connecting to another Key
Trend for 2017: Inflammation. Mr. Mellentin said this is“the next gluten-free,” or
the next high-potential long-term growth
opportunity. “Just like gluten-free back in
2001, many people say inflammation faces
several challenges: consumers don’t understand it, it doesn’t have strong scientific
support, and you cannot immediately feel
the benefit of anti-inflammatory foods. In
fact, all of these objections are rapidly being overcome,” said Mr. Mellentin.
Like gluten-free before it, one of the
most important drivers of growing interest
in inflammation is consumer belief. Like
gluten-free, inflammation taps into deeper
Lonza to Acquire Capsugel
for $5.5 Billion
Deal will create a leading solutions provider in drug development, formulation, delivery technologies