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news.Lonza, a pharmaceutical, healthcare and life science industries supplier, is set to acquire all outstanding shares of Arch Chemicals for $47.2 per share, as part of its plan to expand its life sciences business.
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Connecticut-based Arch Chemicals and its subsidiaries provide chemistry-based and related solutions in the areas of water treatment, personal care, health and hygiene, industrial preservation and protection, and wood treatment.
Given the complementary geographical footprint of both firms, the acquisition is expected to strengthen Lonza’s position in the high-growth economies of China, India, Brazil and South Africa.
The hygiene, water treatment, materials protection and personal care segments are expected to be the key growth sectors for the combined business.
Lonza expects to generate increased sales of $40m by year three following completion of the transaction by leveraging the technical capabilities, applications expertise and extended reach of the two businesses.
Lonza CEO Stefan Borgas said it will allow them to expand their non-pharma life science business to achieve a well-balanced profile based upon two businesses – pharmaceutical contract manufacturing and microbial control.
The closing of the tender offer, which is expected to occur later in 2011, is subject to customary terms and conditions.