Lonza to buy Merck KGaA’s US CDMO network

Lonza has signed a definitive agreement to acquire five CDMO manufacturing sites in the US from Merck KGaA, bringing its total there to nine. It will add some 1,100 people to the US payroll, bringing the total to about 6000. The deal is expected to close in mid-2027.

The transaction deal was not disclosed but Lonza said that it was valued “at a total enterprise valuation in the low- to mid-triple-digit millions Swiss francs”. The sites are expected to contribute around CHF 250 million in sales in 2028. Their core EBITDA is lower than Lonza’s but the impact of this will be insignificant, the company said.

The move was driven by Lonza’s wish to be closer to customers in the US market in key growth sectors centred on complex modalities, in which the company had already made significant investments. The sites and their specific capabilities are:

• St. Louis, Missouri: Bioconjugates 
• Madison & Verona, Wisconsin: High-potency payload-linkers
• Carlsbad, California: End-to-end viral vector services, including aseptic fill-finish 
• Indianapolis, Indiana: Lipid nanoparticle, liposome and PEGylated protein services, including aseptic fill-finish 

“This acquisition is a strong fit with our One Lonza Strategy and reflects our disciplined approach to capital allocation, investing in opportunities that will drive long-term, profitable growth and deliver attractive returns,” said Wolfgang Wienand, CEO of Lonza.

Merck, meanwhile, said that the transaction “advances Merck’s mid- to long-term strategic agenda by focusing its portfolio on innovation-driven businesses with strong value-creation potential. This means prioritising areas where Merck’s science and technology capabilities offer the greatest opportunity to lead and meet evolving customer needs.” 

Merck will continue to sell its broad portfolio of consumables, technologies and services for biopharmaceutical development and manufacturing in the US. Its BioReliance contract testing services is not part of the transaction.