Lonza to buy InterHealth Nutraceuticals
16 Aug 2016
Swiss specialty chemicals and pharmaceutical ingredients company Lonza Group AG yesterday struck a deal to buy InterHealth Nutraceuticals, a US-based maker of nutritional ingredients used in dietary supplements, for up to $300 million.
Basel-based Lonza is acquiring InterHealth Nutraceuticals from private equity firm Kainos Capital and expects the deal to close in September 2016.
Lonza will acquire InterHealth for a total transaction price of up to $300 million, representing a multiple of approximately 10 times InterHealth's EBITDA for the 12 months ended July 2016, split into an upfront payment and an earn-out payment.
California-based InterHealth has more than 15 branded ingredients, including its flagship ingredient, UC-II, which is revolutionising the joint-health segment.
Lonza said that the deal compliments its existing nutritional portfolio in the area of sports nutrition, weight management, immune health and pet health.
The acquisition will also expand Lonza's offerings into new areas such as cognitive and diabetic health.
''With this acquisition Lonza is taking a further step along our strategic path as a high-value supplier to the healthcare continuum,'' said Richard Ridinger, Lonza's CEO.
''Lonza will leverage the successful product portfolio of InterHealth on a global level and in turn will be able to benefit from InterHealth's proven management and branding capabilities to promote Lonza's existing product portfolio. We see significant positive synergies from this combination,'' he added.
Lonza is one of the world's leading suppliers to the pharma and biotech and specialty ingredient markets.
Its products and services range from active pharmaceutical ingredients and stem-cell therapies to drinking water sanitisers, from industrial preservatives to microbial control solutions and manufacturing of vitamin B compounds and organic personal care ingredients to agricultural services and products.
The Swiss and the Singapore stock exchanges-listed company generated sales of CHF 3.8 billion in 2015.
