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Lonza to buy five US sites from Merck KGaA - Finance news and analysis from Global Banking & Finance Review
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Lonza to buy five US sites from Merck KGaA

Published by Global Banking & Finance Review

Posted on November 3, 2026

1 min read

· Last updated: November 3, 2026

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Lonza Doubles US Presence with Acquisition of Five Merck KGaA Manufacturing Sites

Lonza's Expansion and Strategic Acquisition Details

Overview of the Acquisition

Nov 3 (Reuters) - Contract drug manufacturer Lonza will more than double its US footprint after agreeing to buy five manufacturing sites in the country from Merck KGaA, the Swiss company said on Tuesday.

The deal will bring the number of Lonza's US sites to nine, and expand its cell and gene therapy capabilities, while Germany's Merck continues its shift towards a concentrated life science portfolio.

Financial Terms and Timeline

• The deal is valued in a range of low- to mid-triple-digit million Swiss francs, the companies said, and is expected to close in the middle of next year.

Impact on Workforce

• Around 1,100 employees are set to join Lonza's workforce under the transaction.

Market and Analyst Reactions

Barclays Analysts' Perspective

• Barclays analysts described the deal as "strategically positive" for Lonza, pointing to upside from utilisation and margin improvement.

Reporting Credits

(Reporting by Danny Callaghan, editing by Anna Pruchnicka)

Key Takeaways

  • Expands U.S. CDMO network from four to nine sites, strengthening Lonza’s end‑to‑end manufacturing footprint in antibody‑drug conjugates, viral vectors, payload‑linkers, lipid nanoparticles and advanced drug delivery (webdisclosure.com).
  • Deal valued in the low‑ to mid‑triple‑digit million Swiss francs; expected to close mid‑2027, funded via cash and existing credit facilities without impacting Lonza’s BBB+ rating or 2026 guidance (webdisclosure.com).
  • The acquired facilities are projected to generate CHF 250 million in sales by 2028, with EBITDA margins below Lonza’s group average initially, but expected to reach group margin levels by the mid‑2030s (webdisclosure.com).

References

Frequently Asked Questions

What is Lonza acquiring from Merck KGaA?
Lonza is buying five US manufacturing sites from Merck KGaA to expand its operations.
How will this deal affect Lonza’s US footprint?
The acquisition will more than double Lonza's US presence, increasing its US sites to nine.
When is the Lonza-Merck deal expected to close?
The deal is expected to close in the middle of next year.
How many employees will join Lonza under this transaction?
About 1,100 employees will join Lonza as part of the acquisition.
How have analysts described the strategic impact of the deal for Lonza?
Barclays analysts described the deal as strategically positive with potential upside in utilisation and margin improvement.

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