Lonza to sell specialty ingredients segment

H_Ko – stock.adobe.com

Lonza has reported strong group sales growth of 7.7 % and a resilient Core EBITDA margin of 29.1 %. The results reflect the group’s robustness to the challenges and uncertainties arising from the Covid-19 pandemic in H1. The group has worked to ensure business continuity across its operations, while ensuring the safety of its employees as a top priority.

The strong results were driven by the Lonza Pharma Biotech and Nutrition (LPBN) Segment, which delivered 10.8 % sales growth and a Core EBITDA margin of 34.1 %. The Lonza Specialty Ingredients (LSI) segment delivered flat sales growth alongside an increased Core EBITDA margin of 19.7 %.

Decision to divest LSI segment via sale process

Further progress has been made in the carve-out of the LSI segment from the Lonza Group business. New legal entities have been established for each segment. All employees, commercial contracts, operational processes and data have already been allocated to the relevant entities. Although there is still some further work required to complete the carve-out, the more complex and critical areas of the process have now been substantially addressed. In this context, on 23 July 2020, the Board of Directors decided to divest the LSI segment via a sale process, which will be initiated in H2 2020. It is an optimal time for buyers as LSI has demonstrated its profitability and resilience as a specialty chemicals company in the context of the Covid-19 pandemic. The sale will enable Lonza to focus on developing its position as a leading manufacturing partner in the pharma and biotech industry, while delivering optimal value and growth for shareholders.

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