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Last Trade - 07/05/21

Large Cap
Market Cap £49.21bn
Enterprise Value £50.49bn
Revenue £19.19bn
Position in Universe 188th / 6858

Lonza shortlists Lanxess, private equity in unit sale, sources say

Thu 10th December, 2020 1:59pm
FRANKFURT, Dec 10 (Reuters) - Swiss contract drug maker
Lonza  LONN.S  has shortlisted German chemicals group Lanxess
 LXSG.DE  and private equity groups in the sale of its Lonza
Specialty Ingredients (LSI) unit worth more than 3 billion Swiss
francs ($3.38 billion), people close to the matter said.
    Buyout groups Advent, Carlyle, Partners and a consortium
comprising Bain and Cinven were among those advancing to the
next round of bidding, which will be followed by one final one
round, they said.
    A total of six were allowed to proceed, the two people said,
adding that it was unclear whether another private equity firm
or another industrial player had made it through. Lone Star
private equity and SK Innovation  096770.KS  have been mentioned
as possible bidders.
    LSI has annual earnings before interest, tax, depreciation
and amortisation of about 300 million Swiss Francs ($323
million) and may be valued at 10-12 times that in a potential
    The Basel-based company, which announced the sale plans in
July, declined to comment, as did the suitors. 
    LSI is divided into two units, one making microbial controls
for paints, hygiene, personal care and wood treatment, and a
specialty chemicals services business offering contract
manufacturing to clients.
    The company is among several Swiss industrial groups that
are shedding non-core assets to simplify corporate structures. 
    Last month, engineering group ABB  ABBN.S  said it planned
to offload three of its most profitable businesses -
turbocharging, mechanical power and power conversion divisions -
to focus on fewer business areas to improve it margins and
    Separately, chemicals group Clariant  CLN.S  has put its
pigments business up for sale and has shortlisted private equity
firms, including Triton and Lone Star, people familiar with that
deal said. 
    Clariant, Triton and Lone Star declined to comment.     
    ($1 = 0.8885 Swiss francs)

 (Reporting by Arno Schuetze 
Additional reporting by Oliver Hirt; editing by Barbara Lewis)
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