Lonza’s $5.5 Billion acquisition of Capsugel

Simpson Thacher has advised Capsugel S.A. (“Capsugel”), a portfolio company of KKR, in connection with the acquisition of Capsugel by Lonza Group AG (“Lonza”) (VTX: LONN.VX) for $5.5 billion, including refinancing of approximately $2 billion of existing Capsugel debt.

The transaction is expected to close in mid-2017 and is subject to certain regulatory approvals and other customary closing conditions.

Capsugel designs, develops and manufactures a wide range of innovative dosage forms for the biopharmaceutical and consumer health and nutrition industries. Headquartered in Morristown, N.J., Capsugel has approximately 3,600 employees and 13 facilities on three continents. Capsugel was acquired by KKR in a 2011 carve-out acquisition from Pfizer.

The $5.5 billion all-cash acquisition will be financed with a combination of debt and equity financing. Lonza has committed debt financing for the full acquisition amount from Bank of America 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 ($3.2 billion).

Lonza is one of the world’s leading suppliers to the pharmaceutical, biotech and specialty ingredients markets. Lonza has a market capitalization of approximately $8.8 Billion and approximately 9,800 employees worldwide and is headquartered in Basel, Switzerland.

The Simpson Thacher team includes Mark Pflug (Picture), Jakob Rendtorff, Matthew Rogers, Matthew Schwartz, Meredith Hunt, Alexander Cushman and Jake Phillips (M&A, New York); Clare Gaskell (M&A, London); Nancy Mehlman, Taylor Weinstein and Morgan Otway (Tax); David Rubinsky, Jennifer Pepin and Monisha Bhayana (Executive Compensation and Employee Benefits); James Cross, Sinead O’Shea and Adam Shapiro (Credit); Richard Fenyes, Brian Rosenzweig and Benjamin Heriaud (Capital Markets); Peter Guryan, Ellen Frye and Richard Jamgochian (Antitrust); Lori Lesser and Linda Nyberg (Intellectual Property); Krista McManus and Dennis Loiacono (Real Estate); Adeeb Fadil and Noreen Lavan (Environmental); and Joyce Xu and Andrew Des Rault (Derivatives).

Jenner & Block has advised Lonza with a team including Kevin Collins (Life Science/M&A), Martin Glass (M&A), Brian Hart, Jeffrey Shuman (Banking & Finance), Lee Van Voorhis (Antitrust), Geoffrey Davis (Tax), Tony Ling (Employment), Bradford Lyerla, Louis Fogel, Adam Petravicius (IP&IT), Steven Siros (Umweltrecht), Michelle McAtee (Real Estate), Emma Sullivan (Employmnet), Matthew Jacobs (Insurance), Jared Manes, Barbara Asiain, Inna Gelfgat (M&A), Amy Inagaki (Banking & Finance), Karthik Reddy (Antitrust), Alexander Bandza (environmental law), Penelope Campbell, Angela Williams (Real Estate), Kathy Olivi and Kate Eisenmann-Cabral (M&A)

Bär & Karrer has advised Lonza with Rolf Watter (Corporate/M&A), Thomas Reutter (Capital Markets), Ralph Malacrida (Banking & Finance), Mani Reinert (Antitrust), Nadina Duss (M&A), Annette Weber, Daniel Heiniger (Capital Markets), Micha Schilling (Banking & Finance).

Linklaters has advised the banks financing the transaction: Bank of America and UBS with Marco Carbonare (Capital Markets), Ed Aldred (Banking), Kevin Roy (Capital Market), Daria Latysheva, Konrad Uhink, Ariel Berkower, David Santoro, Nadine Berlander, Martin Rojahn (Capital Market).

Homburger has advised Bank of America and UBS with a team including Benedikt Maurenbrecher, Jürg Frick (Banking & Finance), Dieter Grünblatt (Tax), Daniel Daeniker (Capital Markets), Sergio Bortolani (Capital Markets) and David Borer (Banking).

Slaughter and May advised Lonza on the deal with a Finance team led by Robert Byk (partner) and Tom Vickers (partner), assisted by Jonathon Yeung (associate).

Involved fees earner: Kevin Collins – Jenner & Block; Martin Glass – Jenner & Block; Jared Manes – Jenner & Block; Brian Hart – Jenner & Block; Jeffrey Shuman – Jenner & Block; Matthew Jacobs – Jenner & Block; Amy Inagaki – Jenner & Block; Lee Van Voorhis – Jenner & Block; Karthik Reddy – Jenner & Block; Geoffrey Davis – Jenner & Block; Tony Ling – Jenner & Block; Emma Sullivan – Jenner & Block; Bradford Lyerla – Jenner & Block; Louis Fogel – Jenner & Block; Adam Petravicius – Jenner & Block; Steven Siros – Jenner & Block; Alexander Bandza – Jenner & Block; Michelle McAtee – Jenner & Block; Penelope Campbell – Jenner & Block; Angela Williams – Jenner & Block; Daniel Daeniker – Homburger; Sergio Bortolani – Homburger; Benedikt Maurenbrecher – Homburger; Jürg Frick – Homburger; Dieter Grünblatt – Homburger; Rolf Watter – Bär & Karrer; Nadina Duss – Bär & Karrer; Ralph Malacrida – Bär & Karrer; Micha Schilling – Bär & Karrer; Thomas Reutter – Bär & Karrer; Annette Weber – Bär & Karrer; Daniel Heiniger – Bär & Karrer; Mani Reinert – Bär & Karrer; Mark Pflug – Simpson Thacher & Bartlett; Jakob Rendtorff – Simpson Thacher & Bartlett; Matthew Rogers – Simpson Thacher & Bartlett; Matthew Schwartz – Simpson Thacher & Bartlett; Meredith Hunt – Simpson Thacher & Bartlett; Alexander Cushman – Simpson Thacher & Bartlett; Clare Gaskell – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; David Rubinsky – Simpson Thacher & Bartlett; Jennifer Pepin – Simpson Thacher & Bartlett; Monisha Bhayana – Simpson Thacher & Bartlett; James Cross – Simpson Thacher & Bartlett; Sinead O’Shea – Simpson Thacher & Bartlett; Adam Shapiro – Simpson Thacher & Bartlett; Richard Fenyes – Simpson Thacher & Bartlett; Brian Rosenzweig – Simpson Thacher & Bartlett; Benjamin Heriaud – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Ellen Frye – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Linda Nyberg – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Dennis Loiacono – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Noreen Lavan – Simpson Thacher & Bartlett; Joyce Xu – Simpson Thacher & Bartlett; Andrew Des Rault – Simpson Thacher & Bartlett; Robert Byk – Slaughter and May; Tom Vickers – Slaughter and May; Jonathan Yeung – Slaughter and May; Edward Aldred – Linklaters; Marco Carbonare – Linklaters; Kevin Roy – Linklaters; Daria Latysheva – Linklaters; Konrad Uhink – Linklaters; Ariel Berkower – Linklaters; David Santoro – Linklaters; Nadine Berlander – Linklaters; Martin Rojahn – Linklaters;

Law Firms: Jenner & Block; Homburger; Bär & Karrer; Simpson Thacher & Bartlett; Slaughter and May; Linklaters;

Clients: Bank of America Merrill Lynch; UBS; Capsugel S.A.; Lonza Group AG.;