Lonza Group AG announced on 3 November 2026 from Basel, Switzerland, that it has signed a definitive agreement to acquire five contract development and manufacturing organization manufacturing sites in the United States from Merck KGaA, located in Darmstadt, Germany. The transaction carries a total enterprise valuation in the low- to mid-triple-digit millions of Swiss francs. The acquisition expands Lonza's US footprint from four to nine sites and more than doubles its US workforce by adding approximately 1,100 highly skilled employees, bringing its total US employee base to more than 6,000 personnel. The transaction strengthens Lonza's end-to-end capabilities in the United States, which is described as the largest market for innovative pharmaceuticals.
The acquired network provides clinical and commercial development and manufacturing capabilities across several targeted technologies. The facilities included in the agreement are located in St. Louis, Missouri, focusing on bioconjugates; Madison and Verona, Wisconsin, focusing on high-potency payload-linkers; Carlsbad, California, handling end-to-end viral vector solutions alongside aseptic fill-finish capabilities; and Indianapolis, Indiana, which focuses on lipid nanoparticle, liposome, and PEGylated protein solutions alongside aseptic fill-finish capabilities. These assets add capabilities in growth areas such as antibody-drug conjugates and other bioconjugates, viral vectors for cell and gene therapies, and advanced drug-delivery technologies. The acquisition complements ongoing investments by Lonza in CDMO readiness in Vacaville, California, and a commercial spray-drying facility in Bend, Oregon.
Chief Executive Officer Wolfgang Wienand stated that the acquisition aligns with the One Lonza Strategy and disciplined capital allocation. Wienand noted that the high demand for bioconjugates and viral vectors makes the acquired sites capable of supporting customers from innovation to launch and commercial supply. Kai Beckmann, Chairman of the Executive Board and Group CEO of Merck KGaA, stated that the transaction advances the company's strategic agenda by concentrating the Life Science portfolio and focusing investments on scientific leadership, while expressing confidence in Lonza's ability to support the business's next growth phase.
In terms of financial projections, the acquired sites are expected to contribute approximately CHF 250 million in sales in full-year 2028, operating at a CORE EBITDA margin below Lonza's current level with an insignificant impact on the group. Following full integration and utilization of existing available capacities and additional expansion space, the business is anticipated to reach peak sales at Lonza's future group margin level by the mid-2030s. Lonza confirmed its financial outlook for 2026 and its Organic Growth Model, including associated financial mid-term ambitions.
The transaction consideration will be paid in cash, funded through cash at hand and existing credit facilities, while maintaining Lonza's BBB+ rating. The transaction will not affect Lonza's previously announced share buyback following the closing of the divestment of its Capsules & Health Ingredients business. The closing is expected in mid-2027, subject to customary closing conditions. Until then, the businesses will continue to operate independently, with both companies cooperating to support a transition focused on customer continuity and employee integration.
BofA Securities is acting as financial advisor to Lonza. Lonza scheduled a live webcast and conference call for investors, analysts, and journalists on 3 November 2026, featuring presentations and Q&A sessions led by CEO Wolfgang Wienand, CFO Philippe Deecke, Advanced Synthesis Business Platform Head Christian Seufert, and Specialized Modalities Business Platform Head Daniel Palmacci. Lonza operates as a global contract development and manufacturing organization with approximately 17,000 colleagues across three continents.
