Swiss chemicals and biotechnology firm Lonza intends to divest its speciality chemicals unit, known as Lonza Specialty Ingredients, according to Reuters.
Citing people close to the matter, the news provider said the group was preparing to offload the business and could raise between CHF 3.00 billion and CHF 3.50 billion (EUR 2.78 billion and EUR 3.24 billion) in the process.
According to the sources, information packages are to be sent out to prospective suitors in October.
Among those who are being contacted are peers like Lanxess and Clariant, while private equity investors are also said to be among the potential buyers.
None of the parties involved have commented on the report.
A sale of Lonza Specialty Ingredients was first reported in January, when Reuters reported that the unit was being considered for divestment as its parent aims to concentrate on its pharmaceuticals activities.
According to Zephyr, the M&A database published by Bureau van Dijk, Lonza’s most recent asset sale took place in November 2018, when it agreed to jettison its Water Care business and operations to Platinum Equity for USD 630.00 million.
Completion of the deal followed at the beginning of March 2019.
Lonza was founded in 1897 and now describes itself as a leading global provider of integrated healthcare solutions.
The company employs in excess of 15,500 people and operates from 120 sites and offices across over 35 countries.
Its operations are separated into two divisions – Lonza Pharma, Biotech & Nutrition and Lonza Specialty Ingredients, the unit being mooted for divestment.
The latter focuses on microbial control for personal care and the protection of homes, schools, workplaces and environments from mould, among other potential pathogens.
Lonza generated sales of CHF 3.07 billion in the first half of 2020, of which CHF 819.00 million was attributable to the Specialty Ingredients unit.
© Zephus Ltd