Lonza Specialty Ingredients Carve-Out Complete
Lonza has completed the carve-out of its Specialty Ingredients business as LSI and appointed a management team led by CEO Mark Doyle, a former DuPont and DowDuPont chief. The newly independent company with a workforce of 2,900 and a global presence in 32 countries is now owned by Herens HoldCo, an entity controlled by private equity firms Bain Capital and Cinven.
LSI’s focus going forward will be to strengthen the positions of both the Microbial Control Solutions (MCS) and Specialty Products Solutions (SPS) units through strategic M&A opportunities and internal investment, particularly in innovation and its production assets, thereby expanding its geographic footprint and the scale and depth of its capabilities.
Customers for the company’s products are in end-markets ranging from consumer-facing personal care and hygiene to industrial applications including paints and coatings, advanced composites, electronics and wood treatment.
LSI said its MCS business is built on industry-leading regulatory expertise, the broadest set of bioactives and the widest range of registrations in the world, while the SPS unit is grouped into three divisions of performance intermediates and chemicals, composite materials and the custom development and manufacturing organization. The two businesses will work closely together.
Doyle called the carve-out “a transformational opportunity for LSI, enabling it to accelerate its growth strategy within the microbial control and specialty chemicals markets with the strong, long-term support of its new owners.”
Building on the “solid foundations” created by Lonza Group, the CEO said being a separate entity will allow the business to be more responsive and agile, developing unique, innovative solutions to help customers protect their products from microbial spoilage, improve health and safety and reduce their environmental footprints.
Flanking Doyle on the management team, Frank Stahl will continue to lead the MCS business as he did under Lonza, while Antje Gerber will continue to head the SPS business. Both executives have more than 20 years’ experience in the specialty chemicals industry, holding leadership positions at large international companies, including Huntsman, Evonik, BASF and Cognis.
The LSI board will comprise four directors from Bain Capital: David Danon, Youssef Salha, Michael Siefke and Stephen Thomas, along with four directors from Cinven: Anthony Cardona, Pontus Pettersson, Bruno Schick and Tom Thomasson. Antonio Trius, former CEO of Cognis, has been appointed as an independent director.
The new company will continue to produce at Visp, Switzerland, where it will invest to enhance its technical capabilities and expand its portfolio of high-end specialty chemicals. LSI will share the site with Lonza to continue its close collaboration with the provision and the receipt of various complementary services and products.
Author: Dede Williams, Freelance Journalist
