Lonza to Sell Water Care to Platinum Equity
Lonza has agreed to sell its Water Care business to US investment group Platinum Equity for $630 million, while still discussing the inclusion of the company’s business in France. The deal is expected to close in the first quarter of 2019, subject to the usual closing conditions.
The Swiss company said in May it had retained an investment bank to look at strategic options for the water treatment business, which was originally part of its acquisition of Arch Chemicals in 2011.
Headquartered in Alpharetta, Georgia, USA, the Water Care division provides products for swimming pools as well as industrial, municipal, commercial and surface water treatments. It has six manufacturing plants in North and South America, Europe, Middle East, Africa and South Africa, employing around 1,200 people.
Lonza’s CEO, Richard Ridinger said the company is putting the Water Care business in the hands of an experienced owner who will develop it as a stand-alone business while focusing on innovation and further growth. “The divestment further strengthens our strategic focus on our three core pillars – Pharma & Biotech, Consumer Health and Consumer & Resources Protection – within the healthcare continuum,” he said.
Lonza boosted its presence in the healthcare sector last year, when it paid $5.5 billion for US capsule maker Capsugel.
