Lonza Offers $1.4B in Cash to Acquire U.S.-Based Biocides Firm Arch Chemicals
Swiss CMO claims takeover will strengthen and balance life science portfolio.!--h2>
Lonza will acquire biocides firm Arch Chemicals for $47.2 per share in cash, or $1.4 billion for the entire share capital. The offer price represents a 36.7% premium on Arch’s average closing price over the last month. The Arch board has unanimously recommended its shareholders accept the offer.
Arch specializes in microbial control products for hygiene, water treatment, materials protection, and personal care markets, and Lonza claims the acquisition will significantly strengthen and balance its life science portfolio. Combined proforma sales in relevant microbial control fields equated to some $1.6 billion in 2010.
Arch Chemicals’ and Lonza’s microbial control businesses are highly complementary, both in terms of chemical manufacturing and geographical footprint, Lonza maintains, and the acquisition of Arch will particularly strengthen the firm’s position in high-growth territories including China, India, Brazil, and South Africa.
The merged business will also represent a springboard for new R&D and product development investment across a broader product portfolio, Lonza claims. “Lonza and Arch Chemicals offer highly complementary products and technologies,” comments Stefan Borgas, Lonza CEO. “The acquisition of Arch Chemicals is the next logical step in Lonza’s life science focused strategy. It will allow us to expand our nonpharma life science business to achieve a well-balanced profile based upon two world-leading growth businesses – pharmaceuticals contract manufacturing and microbial control.”