Gimv invests in emerging immuno-oncology company ImCheck Therapeutics

GIMV

Gimv invests in immuno-oncology company ImCheck Therapeutics

Gimv today announces a EUR 5 million investment in French ImCheck Therapeutics, an emerging player in the field of cancer and auto-immune immunotherapies that focuses on the development of first-in-class antibodies that activate the immune system against different cancer types. This investment is part of a total Series A financing of EUR 20 million from a consortium of specialized life sciences investors including Kurma, Boehringer Ingelheim Venture Fund (BIVF), Idinvest and Life Science Partners (LSP).

ImCheck Therapeutics was founded in 2015 as a spin-off from the Paoli-Calmettes Cancer Institute in Marseille (France). The company is developing innovative antibody therapeutics in the field of immuno-oncology, based on scientific assets originating from the pioneering work of Prof. Daniel Olive. The funds will be used to advance its lead candidates towards clinical development, as well as to progress its discovery programs.

Karl Nägler, Partner in Gimv’s Health and Care platform, on this transaction: «We are excited to partner with ImCheck and with such a strong syndicate of first class biotech investors, given the game-changing potential of ImCheck’s development candidates for the treatment of cancer. After earlier investments in Topas Therapeutics, G-Therapeutics, Endostim, Spineart and Breath Therapeutics, ImCheck Therapeutics in the sixth new investment of Gimv’s Health & Care team over the past 12 months.»

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HBM Healthcare Investments commits EUR 20 million in growth capital to Switzerland based Amicus SA

HBM Healthcare Investments today announced the closing of a new equity investment of EUR 20 million
in two tranches into the privately held and Switzerland based Amicus SA.
The financing willallow Amicus to accelerate the growth of its pharmaceutical business in Central and Eastern
Europe (CEE).
Amicus is a revenue generating company and was established by the former founders ofPharmaSwiss SA, in which HBM Healthcare Investments was a significant shareholder from 2007 until 2011 when the company was sold.
The company specializes in the distribution of pharmaceutical products, medical equipment and over the counter brands in countries where the originators decide notto maintain a direct presence. Leading healthcare companiessuch as Alcon,Bristol Myers Squibb, Cardinal Health, Expanscience, Grupo Ferrer, General Electric, Genexo, Pfizer, PharmaNutra and Salvat Biotech, amongst others, are represented by Amicus.
For further information, please contact Dr. Andreas Wicki on +41 41 710 75 77, or at
andreas.wicki@hbmhealthcare.com
Information on HBM Healthcare Investments Ltd
HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages
an international portfolio of promising companies in the human medicine, biotechnology, medical
technology and diagnostics sectors and related areas. Many of these companies have their lead
products already available on the market or at an advanced stage of development. The portfolio
companies are closely tracked and actively guidedin their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

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IK Investment Partners to acquire Colisée

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IK Investment Partners (“IK”), a leading Pan-European private equity firm, is pleased to announce that the IK VIII Fund has reached an agreement with Eurazeo PME and the management team to acquire a majority stake in Colisée Group (“Colisée”), a leading player in the elderly care segment in France. The management team as well as the founder will reinvest alongside IK. Financial terms of the transaction are not disclosed and completion of the transaction is subject to regulatory approvals.

Colisée is a leading provider of nursing home and homecare services. With more than 90 nursing home facilities and 70 home care services agencies, the Group has developed a geographical footprint across France, Italy, Spain, and more recently in China. Colisée employs approximately 6,700 people and has a turnover exceeding 390 million euros.

”We are very pleased to welcome IK Investment Partners as our new majority shareholder. Supported by the founding family as well as our existing financing banks, we will pursue alongside IK our acquisition strategy through selective buy-and-build as well as the development of innovative services for the elderly people. Building on our 6,700 employees, we remain committed to implementing a responsible and respectful group providing best-in-class daily care to our residents, patients, homecare beneficiaries and their relatives”, said Christine Jeandel, CEO of Colisée.

”We have been very impressed by Colisée’s long and successful heritage within elderly care as well as its growth track record demonstrated over the past years. Led by an experienced management team, Colisée has been able to build solid market positions while having an uncompromising focus on quality. We are delighted to have the opportunity to support Colisée and its management team in their growth strategy both organic and through selected add-on acquisitions in France and across Europe”, added Dan Soudry, Partner at IK.

Parties involved

IK Investment Partners – Dan Soudry, Remi Buttiaux, Diki Korniloff, Vincent Elriz, Guillaume Veber

Buyer
Financial advisor: Sycomore (Olivier Barret, Tristan Dupont), Clearwater (Laurent Camilli, Nicolas Saint-Pierre)

Seller
Financial advisor: Lazard (Isabelle Xoual, Francois Guichot-Perere)
Strategic DD: Roland Berger (Patrick Biecheler, Julien Gautier, Nick Hwang)
Financial DD: PwC (Martin Naquet-Radiguet, Sofia Bennis)
Legal advisor: Goodwin (Maxence Bloch, Pierre-Louis Sevegrand, Simon Sevran-Schreiber, Rémi Pages, Marie-Laure Bruneel, Frederic Guilloux)
Financing banks: BOI (Olivier Meary, Maxime Alban), CACIB (Thibery Gleizes, Francois de Montlivault), CIC (Brice Bourrely, Valerie Benquet, Arnaud Lecaudey), ING (Gregoire Villiaume, Bastien Lefevre)
Legal advisors Bank: Latham & Watkins (Xavier Farde)

For further questions, please contact:

Colisée
Agnès Gilbert
Phone: +33 1 70 38 25 54
a.gilbert@eudoxie-pr.com

IK Investment Partners
Dan Soudry, Partner
Phone: +33 1 44 43 06 60

Mikaela Hedborg, Director Communications & ESG
Phone: +44 77 87 573 566
mikaela.hedborg@ikinvest.com

About Colisée
Colisée is a key player in the global health care and old-age dependency sector, and has developed a real expertise in elderly people care and well-being. Its network includes 90 facilities in France, Italy and Spain and close to 70 home-based services agencies in France. In those two business segments, Colisée employs more than 6,700 people. For more information, please visit www.groupecolisee.com

About IK Investment Partners
IK Investment Partners (“IK”) is a Pan- European private equity firm focused on investments in the Nordics, DACH region, France, and Benelux. Since 1989, IK has raised more than €9 billion of capital and invested in over 100 European companies. IK funds support companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

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Capio acquires a Swedish eye specialist clinic Globen Ögonklinik in Stockholm

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Capio has signed an agreement to acquire 100% of the shares in Globen Ögonklinik (PanSyn Sweden AB, including subsidiaries) (“Globen”). The clinic is specialized in ophthalmology and offers complex eye treatments, including cataract surgery, RLE (Refractive Lens Exchange) and refractive laser treatments. Net sales in 2016 were MSEK 75.

Globen provides ophthalmology treatments at two locations in the southern part of Stockholm and performs annually about 36,000 consultations and 4,600 surgeries. The clinic serves both public and private pay patients, with its main focus being on supporting the public healthcare system (about 80% of net sales are publicly financed). The acquisition follows the acquisition of Scanloc (Sweden) in August 2016 and Capio’s recent acquisition of Augenklinik Universitätsallee (Germany), and further strengthens Capio’s healthcare offering within ophthalmology and expands the Group’s footprint in the Nordics.

Globen will be included in Capio Medocular, which is part of the business area Capio Specialist Clinics. Capio Medocular was founded in 1986 and is today one of the largest private companies within ophthalmology treatments in the Nordics, specialized in general eye care, cataract surgery and treatment of sight disorders.

Enterprise value is MSEK 75 and the acquisition, which is subject to approval by the county council (SLL), is expected to be closed and included in Capio from May 31, 2017. The acquisition is not expected to significantly impact the Group’s earnings in 2017.

For information, please contact:

Olof Bengtsson, CFO
Telephone: +46 761 18 74 69

Kristina Ekeblad, IR manager
Telephone: +46 708 31 19 40

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BerGenBio heads for IPO

Investinor

Investinor’s portfolio company BerGenBio announces its intention to launch an Initial Public Offering and apply for a listing on Oslo Stock Exchange.

Completion of the IPO will be subject to receiving the relevant approvals from Oslo Børs as well as prevailing equity capital market conditions.

Read the full announcement at OSE’s website.

BerGenBio is a clinical-stage biopharmaceutical company focused on developing a pipeline of first-in-class drug candidates to treat multiple aggressive cancers.

The Company has pioneered the research and understanding of the central role of Axl kinase in a broad range of aggressive cancers that spread, avoid the immune system and are resistant to existing
drugs. Tumours with these characteristics are the cause of the majority of cancer deaths.

BerGenBio is developing a number of Axl kinase inhibitors, which represents a novel approach to address the key mechanisms leading to tumours becoming malignant and
aggressive. This approach presents the Company with an opportunity to create new therapeutic options for cancer patients.

The Company is also developing a pipeline of additional Axl inhibitors, including an anti-Axl kinase antibody and antibody drug conjugate (ADC), which are currently in preclinical stage.

In addition, BerGenBio is developing companion diagnostics to identify cancer patients whose tumours express Axl kinase and are therefore more likely to respond to treatment
with Axl inhibitors.

Richard Godfrey, CEO of BerGenBio, commented:

”BerGenBio is pioneering a new approach to treating aggressive cancers based on its deep understanding of Axl biology. Our lead compound, BGB324, the only highly selective Axl
inhibitor in clinical development, has already delivered encouraging clinical data in patients with AML/MDS and NSCLC, indicating it could provide an important new improved treatment option for these indications.

The clinical collaboration with MSD announced today will allow us to assess BGB324 in combination with its immune checkpoint inhibitor KEYTRUDA. Our
planned IPO will provide BerGenBio with the funds needed to develop BGB324 through to regulatory trials and to generate significant value for shareholders. We will continue to
evaluate the optimal strategy for further development and commercialisation of BGB324, either alone or in conjunction with partners.”

Stein H. Annexstad, Chairman of the Board, commented:

“The IPO is a natural next step in the Company’s development that will help it secure a broader, long-term shareholder base. In addition, the listing will enhance BerGenBio’s
visibility among potential partners, ensure organised and regulated trading of the shares as well as provide access to the capital markets.”

Offering Highlights
The IPO will comprise a public offering to institutional and retail investors in Norway and Sweden, and a private placement to certain institutional investors internationally. The largest
existing shareholder has indicated that it will offer strong support through the IPO of the Company.

ABG Sundal Collier, Arctic Securities and DNB Markets are acting as Joint Global Coordinators and Joint Bookrunners in the IPO.

Enquiries:
Richard Godfrey, CEO
richard.godfrey@bergenbio.com, +47 917 86 304

Petter Nielsen, CFO
petter.nielsen@bergenbio.com, +47 922 47 464

For International media enquiries
David Dible / Mark Swallow / Marine Perrier, Citigate Dewe Rogerson
bergenbio@citigatedr.co.uk, +44 207 638 9571

For media enquiries in Norway
Mitra Hagen Negård, Kari Holm Hejna, First House
mhn@firsthouse.no, khh@firsthouse.no, +47 957 936 31
Important Notice

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

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Kinnevik invests USD 12.5 million in Livongo

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Kinnevik

Kinnevik AB (publ) (“Kinnevik”) today announced that it has invested USD 12.5m as part of a USD 52.5m funding round in Livongo Health Inc. (“Livongo”), a California based consumer digital healthcare company helping people with diabetes to live healthier lives. Kinnevik will own 3.5% of Livongo after the funding round.

The financing was co-led by Kinnevik and existing investor General Catalyst.

Livongo is a digital chronic care management platform that provides diabetes patients with a personalized, end-to-end service, from measurement of blood glucose levels to real-time, contextual feedback and access to live coaching by certified diabetes educators. Diabetes is one of the largest chronic diseases in the world affecting more than 400 million people. Livongo is helping more than 25,000 patients manage their diabetes and counts almost 15% of Fortune 100 companies amongst its fast growing client base.

Joakim Andersson, Interim CEO of Kinnevik, commented: “Livongo is our second investment in healthcare, a sector where we see the opportunity for technology-enabled platforms to deliver better outcomes at more affordable prices. Diabetes is a large, growing and life-long condition that requires a comprehensive approach to address patient needs. We have been impressed by Livongo’s platform and their impact on the US diabetes market to date, and are delighted to partner with the team to build a global leader in chronic care management over the long-term.”

For further information, visit www.kinnevik.com

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Acino to acquire Litha Healthcare in South Africa

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Acino signed a deal with certain subsidiaries of Endo International plc to acquire Litha Healthcare in South Africa.

Litha Healthcare, headquartered in Midrand, Johannesburg, is a pharma group with around 160 employees providing products and services to public and private hospitals, pharmacies, general and specialist practitioners, as well as government law enforcement programs.

The acquisition is fully in line with Acino’s strategy to grow its business by entering selected high potential markets in the Middle East and Africa. The acquisition of Litha Healthcare gives Acino immediate access and a strong presence in South Africa, which is key for the company to become a significant player in the pharmaceutical landscape on the continent.

Closing of the deal is expected in the second quarter of this year.

Acino is part of the portfolio of Nordic Capital

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Partners Group and PSP Investments to acquire Cerba HealthCare, from PAI Partners

Partners Group, the global private markets investment manager, acting on behalf of its clients, and the Public Sector Pension Investment Board (“PSP Investments”), one of Canada’s largest pension investment managers, have agreed to acquire European medical laboratory services operator, Cerba HealthCare (“Cerba”, “the Company”). The company is being acquired from PAI Partners, a leading European private equity firm, and the company’s clinical pathologists and managers.

Founded in 1967 and headquartered in Paris, France, Cerba is a leading operator of clinical pathology laboratories, with a number one position in France and strong market positions in Belgium and Luxembourg. The majority of Cerba’s revenues are generated via routine lab tests. The company also focuses on specialty lab testing for more complex medical diagnoses and testing services for clinical trials. Cerba’s clients include private patients, physicians, labs, private and public hospitals, retirement and nursing homes, and pharmaceutical and biotech companies. The company employs almost 4,300 people, including 350 biologists, and generated revenues of approximately EUR 630 million in 2016.

Following the completion of the acquisition, which is subject to the legislative information process involving the Company’s works council and regulatory approvals, Partners Group and PSP Investments will work with Cerba’s management team, led by CEO Catherine Courboillet, to support the numerous growth opportunities of the business. These include the continuation of the Company’s highly successful M&A strategy within the French market and internationally, as well as the acceleration of organic growth and development in other segments.

Catherine Courboillet, CEO, Cerba HealthCare, states: “Cerba has enjoyed tremendous growth in the past decade. When we approached the transition to new ownership, we focused on finding partners who would not only support a continuation of this pace of growth, but could also bring valuable support in international development. We believe we have found the right partners in Partners Group and PSP Investments and look forward to working together with them to further build on Cerba’s market-leading position.”

Kim Nguyen, Managing Director, Private Equity Europe, Partners Group, comments: “Cerba is a resilient market leader in a highly attractive and fragmented sub-sector of the healthcare industry. The unique fully integrated business model means that Cerba is ideally positioned to further consolidate the French market and accelerate organic growth. We have been impressed by Catherine Courboillet’s strategy of entering new business areas and optimizing Cerba’s retail portfolio. We look forward to working together with Catherine and her team and our investment partner PSP Investments to continue strengthening Cerba’s market leadership position.”

Simon Marc, Managing Director, Private Equity (Europe), PSP Investments, adds: “Over the last couple of decades, Catherine Courboillet and her team have grown Cerba HealthCare into the leading private medical biology laboratory business in France. Cerba has developed a unique positioning in its markets on the back of its widely recognized medical and industry expertise and we are excited about the growth prospects of the company. As a provider of long-term strategic capital, we look forward to working with Partners Group, Catherine and the management team to support Cerba’s growth in France and internationally.”

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IK Investment Partners to sell Colosseum Smile to Jacobs Holding AG

ik-investment-partners

IK Investment Partners to sell Colosseum Smile to Jacobs Holding AG

IK Investment Partners (“IK”) is pleased to announce that the IK 2007 Fund has reached an agreement to sell Colosseum Smile Group, leading provider of private dental care in Scandinavia, to Jacobs Holding AG (“JAG”). Financial terms of the transaction are not disclosed.

Colosseum Smile Group was acquired by IK in 2010 and has since then accelerated its growth and consolidation of the Scandinavian dentistry market. Today Colosseum Smile is the leading provider of private dental care in Scandinavia with 52 clinics in Norway, Sweden and Denmark, offering a range of services from basic dental care to specialist surgery.

“Together with our employees and supported by IK, we have successfully developed Colosseum Smile from two smaller dentist chains to a high quality private dental care provider. We believe we have now reached a phase when we, together with JAG, will be able to take the next step in our development to reach our mission to be the best and most recognised Scandinavian provider of modern dental care for both customers and producers,” said David Halldén, CEO of Colosseum Smile.

Headquartered in Oslo, Colosseum Smile offers a full range of dental care services through its state of the art clinics across Scandinavia. The group has more than tripled in size since IK acquired Colosseum in Norway 2010 and merged Colosseum and Smile in Sweden in 2014.

Colosseum Smile has taken an active role in consolidating the fragmented dental care markets in Norway, Sweden and Denmark. Today the group’s sales amount to over 1.2 billion NOK.

”With numerous acquisitions and a merger, and together with Colosseum Smile’s management team, we have successfully transformed the company from an entrepreneurial endeavor to a leading chain in Scandinavia. The company is a first mover to integrate and consolidate the Scandinavian market, and is now ready to further leverage its platform,” said Thomas Klitbo, Partner at IK Investment Partners and advisor to the IK 2007 Fund.

“We are looking forward to acquire Colosseum Smile Group with its strong track record of delivering high quality care and offering excellent value to its patients and producers alike. We are excited to partner with the management team, and support them in their continuous efforts of building the leading dentistry chain in the Nordics,” said Tomas Aubell, Head of Investments at JAG.

The transaction is expected to close in the beginning of 2017.

For further questions, please contact:

Colosseum Smile
David Halldén, CEO
Phone: +46 708 441998

IK Investment Partners
Thomas Klitbo, Partner
Phone: +44 207 304 4300

Mikaela Hedborg
Communications & ESG Manager
Phone: +44 77 87 573 566
mikaela.hedborg@ikinvest.com

About Colosseum Smile
Colosseum Smile is Scandinavia’s largest private dental chain with 52 clinics in Norway, Sweden and Denmark. The group has more than 1,200 employees. W e are a dental chain with general dentists, dental hygienists, dental assistants and 90 leading specialists in all dental areas – all with the ambition to offer the best Nordic dentistry. Involvement, Innovative thinking and a holistic perspective form the cornerstones of Colosseum Smile’s values and guides us in how we conduct dental treatment and our aspiration to be the industry’s best workplace. For more information, please visit www.smile.se and www.colosseumklinikken.no

About IK Investment Partners
IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Nordics, DACH region, France, and Benelux. Since 1989, IK has raised more than €9 billion of capital and invested in over 100 European companies. IK funds support companies with strong underlying potential, partnering with management teams and investors to create robust, well positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

About Jacobs Holding AG
JAG is a global professional investment firm based in Zurich and founded in 1994 by entrepreneur Klaus J. Jacobs. Its sole economic beneficiary is the Jacobs Foundation, one of the world’s leading charitable foundations dedicated to child and youth development. JAG has an established track record of holding its investment for long periods with the aim to successfully compete and become global market leaders in their respective fields. Previous and current investments include Jacobs Suchard AG, Adecco Group AG and Barry Callebaut AG. For more information, visit www.jacobsag.ch

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Lonza to Acquire Capsugel to Create Leading Integrated Solutions Provider to the Global Pharma and Consumer Healthcare Industries

Strategic Advantages

  • Lonza to acquire Capsugel for USD 5.5 billion, including refinancing of existing Capsugel debt of USD ~2 billion
  • Acquisition is expected to accelerate Lonza’s growth and ability to deliver value along the healthcare continuum
  • Acquisition addresses needs of customers for integrated, value-added solutions that accelerate drug and ingredient delivery to patients and consumers
  • The combined portfolio offering will position Lonza as the development, formulation, delivery technology and manufacturing partner of choice for the pharma industry
  • Lonza will become a fully integrated solutions provider in oral delivery technologies and active ingredients to the consumer healthcare and nutrition markets

Financial Advantages

  • Lonza expects to achieve CHF ~30 million p.a. operating synergies and CHF ~15 million tax synergies p.a. by year three and CHF ~100 million p.a. top-line synergies in the mid- to long-term
  • Transaction is expected to be CORE EPS accretive in the first full year post closing
  • Capsugel’s profitable business model and robust cash generation expected to further enhance Lonza’s strong financial profile
  • Lonza intends to retain current dividend policy and maintain ~3x net debt/EBITDA leverage

Lonza Group AG (“Lonza,” VTX: LONN.VX), KKR and Capsugel S.A. (“Capsugel”) today announced that they have entered into a definitive agreement under which Lonza will acquire Capsugel from KKR for USD 5.5 billion in cash, including refinancing of existing Capsugel debt of approximately USD 2 billion, through a transaction that has been approved by the Boards of Directors of both Lonza and Capsugel. The transaction will be financed with a combination of debt and equity financing. The EV/adjusted EBITDA multiple for the transaction adds up to 15.1x based on the last 12 months adjusted EBITDA figures up to September 2016.

This acquisition is fully in line with Lonza’s stated strategy to accelerate growth and deliver value along the healthcare continuum by complementing its existing offerings and by opening up new market opportunities in the pharma and consumer healthcare and nutrition industries. With the acquisition of Capsugel, Lonza will add a trusted brand with a large breadth of technologies and will expand the market reach of its contract development and manufacturing organization (CDMO) and products businesses. It will also support Lonza’s strategic ambition of getting closer to the patient and end consumer.

The acquisition is designed to create a leading integrated, value-added solutions provider in drug development, formulation, delivery technologies and manufacturing for the global pharma and consumer healthcare industries. The combined business will be well positioned to benefit from the dynamics in these industries and to anticipate and address technology trends in order to support the evolving needs of its customers. It will provide additional value by offering an integrated portfolio of industry-leading technologies, from active pharmaceutical ingredients (APIs) through excipients to dosage forms and delivery technologies.

With the addition of Capsugel’s world-leading advanced oral dosage delivery technologies, including its leading position in hard capsule technologies, Lonza will become the partner of choice for its pharma customers along the entire value chain. The combined technologies and offerings will provide customers innovative solutions in both large and small molecules and solidify Lonza’s position as the partner best able to support the pharma industry by bringing new, differentiated medicines to market rapidly and efficiently.

In addition, the acquisition is expected to strengthen Lonza’s position in consumer healthcare and nutrition as Lonza becomes a fully integrated and innovative service provider of active ingredients, oral dosage forms, development services and delivery technologies. As a result Lonza will be well positioned to meet the increasing need for optimized consumer health and nutrition through a wide offering of next-generation dosage forms. The combined business will also be able to leverage its bioavailability technology to create a new dietary ingredient-ready offering, as well as capitalize on its formulation expertise to develop new ingredients and to market new combination products.

The enlarged business would have had combined 2015 revenues of approximately CHF 4.8 billion and adjusted EBITDA of approximately CHF 1.1 billion with an enhanced margin profile. Lonza and Capsugel’s highly synergistic customer base and complementary business models will facilitate seamless integration. The combined business will be able to leverage the strong regulatory track record and global footprint of each company.

With approximately 3,600 employees and 13 facilities on three continents, Capsugel has a customer-centric, entrepreneurial and collaborative culture that closely aligns with Lonza’s corporate culture. Both companies focus on quality, operational excellence and delivering on promises.

Richard Ridinger, Chief Executive Officer of Lonza, commented, “The acquisition of Capsugel meets Lonza’s strategic and financial goals. It accelerates our healthcare continuum strategy by giving us broader exposure to the fast-growing pharma and consumer healthcare markets. We expect the transaction to be accretive to our core earnings per share in the first full year post closing.”

He explained further, “This new integrated approach will benefit our customers, who will gain from the simplicity and efficiency of working with one company that can provide world-leading support from APIs to excipients and dosage forms. The combined business will allow us to partner with our customers to help them bring highly differentiated products to market more quickly and efficiently.”

Guido Driesen, President and Chief Executive Officer of Capsugel, said, “This transaction brings together two leading companies that share a common vision – to deliver real value to customers by accelerating their ability to develop and commercialize innovative pharmaceutical and healthcare products. The combination of our complementary technology platforms will put us in a strong position to benefit from evolving trends in the pharma and consumer healthcare markets.”

He added, “Both companies enjoy a strong quality and regulatory track record, and we believe that the combination enables us to provide the most complete set of tailored and integrated solutions for our customers. We look forward to bringing together our talented teams to deliver science- and engineering-based solutions to customers for the benefit of the patients and consumers who use their products. I am personally committed to making this integration a success.”

Pete Stavros, Member of KKR and Head of the Industrials Investing Team, said, “Since acquiring Capsugel five years ago, we have supported Guido and his management team in repositioning the company from a global leader in hard capsules into a specialty CDMO. Capsugel has grown significantly by investing in innovation, strategic acquisitions, product development and geographic expansion. Now Capsugel is well positioned for the next phase of its growth, and we look forward to its continued success as a part of Lonza.”

Synergies

The bulk of the benefits resulting from the transaction will be gained from positive top-line and innovation synergies. The highly synergistic customer base, the expanded addressable market and the improved value proposition for the customer will allow Lonza to further leverage its current product and service offerings. Also the acquisition of Capsugel will allow cross-selling of existing products, combine manufacturing solutions and services and create an integrated value offering that merges Lonza’s ingredients with Capsugel’s dosage forms.

The primary initial focus of this transaction is to ensure a seamless integration while continuing the strong growth trajectory of the Capsugel business. Lonza believes that the step-by-step integration will preserve the strong innovation culture and lead to a combined top-line synergy potential of around CHF 100 million per annum in the mid- to long-term.

Lonza expects to achieve operating synergies of CHF ~30 million per annum, which are expected to be fully realized by year three, in the areas of corporate, procurement and IT, as well as various efficiency gains. In addition, tax synergies of CHF ~15 million per annum are expected.

Lonza anticipates that the transaction will be accretive to its CORE Earnings per Share (EPS) from the first full year post closing onwards and intends to retain its current dividend policy.

Financing and Approvals

The USD 5.5 billion all-cash acquisition of Capsugel will be financed with a combination of debt and equity financing. Lonza has committed debt financing for the full acquisition amount from BofA Merrill Lynch and UBS and plans to raise equity, which is fully underwritten by UBS and BofA Merrill Lynch for an amount up to CHF 3.3 billion.

Lonza’s Board of Directors is currently authorized to increase the share capital through the issuance of 5,000,000 fully paid-in registered shares. Lonza’s Board intends to seek approval for additional share capital at its upcoming annual general meeting (AGM) in April 2017.

Lonza expects to retain a leverage profile around ~3x net debt/EBITDA at closing and to maintain its unofficial investment-grade credit profile assigned by a number of Swiss banks. Lonza believes that the strong projected cash flow of the combined company will enable rapid de-leveraging after the acquisition and continue to support all planned growth initiatives.

The financial package foresees the refinancing of Lonza’s current CHF 700 million revolving credit facility.

The transaction is expected to close in the second quarter of 2017 and is subject to certain regulatory approvals and other customary closing conditions.

Additional information about Lonza can be found on www.lonza.com, about Capsugel on www.capsugel.com, and about the acquisition on the dedicated transaction website www.TheFutureLonza.com, which may be updated from time to time.

Jefferies LLC is serving as lead financial adviser to Lonza. UBS AG and BofA Merrill Lynch also provided financial advice. Jenner & Block LLP is serving as Lonza’s legal counsel. Goldman Sachs is serving as sole financial adviser to Capsugel. Simpson Thacher & Bartlett LLP is serving as Capsugel’s legal counsel.

About Lonza

Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets. We harness science and technology to create products that support safer and healthier living and that enhance the overall quality of life.

Not only are we a custom manufacturer and developer, Lonza also offers services and products ranging from active pharmaceutical ingredients and stem-cell therapies to drinking water sanitizers, from the vitamin B3 compounds and personal care ingredients to agricultural products, and from industrial preservatives to microbial control solutions that combat dangerous viruses, bacteria and other pathogens.

Founded in 1897 in the Swiss Alps, Lonza today is a well-respected global company with more than 40 major manufacturing and R&D facilities and approximately 9,800 full-time employees worldwide. The company generated sales of CHF 3.8 billion in 2015 and is organized into two market-focused segments: Pharma&Biotech and Specialty Ingredients.

Further information can be found at www.lonza.com.

Lonza Contact Information

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