Merck exits U.S. CDMO operations in sale to Lonza
Merck KGaA (MKGAF) has agreed to sell five U.S. contract development and manufacturing (CDMO) sites to Swiss drug manufacturer Lonza (LZAGY) for an enterprise value in the low- to mid-triple-digit millions of Swiss francs.
The deal includes ~1,100 employees and is expected to close in mid-2027.
The facilities are expected to generate around CHF250M in sales in 2028, at a core EBITDA margin below Lonza's group level, with an insignificant impact on the group's overall results, Lonza said.
The deal will expand Lonza's (LZAGY) U.S. CDMO network from four sites to nine, adding capabilities in bioconjugates, viral vectors and drug-delivery technologies.
Merck (MKGAF) said the sale aligns with its strategy to refocus its Life Science portfolio. Its BioReliance contract testing business is excluded.
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