Lonza has agreed to acquire five U.S. contract development and manufacturing organization (CDMO) sites from Merck KGaA, expanding its American network from four facilities to nine. The companies described the transaction’s value as being in the low- to mid-triple-digit millions of Swiss francs.
The sites would add approximately 1,100 employees to Lonza’s U.S. workforce, bringing its total there to more than 6,000. The acquisition is also intended to extend the company’s U.S. capabilities across drug development and manufacturing, from clinical work through commercial supply.
The facilities are located in St. Louis, Missouri, for bioconjugates; Madison and Verona, Wisconsin, for high-potency payload-linkers; Carlsbad, California, for viral-vector services, including aseptic fill-finish; and Indianapolis, for lipid nanoparticle, liposome and PEGylated protein solutions, also including aseptic fill-finish.
Lonza said the sites are expected to generate about CHF 250 million in combined sales, with a core EBITDA margin below the group’s level and an “insignificant” effect on the overall company. It expects them to support further growth over time, using available capacity and space for expansion. Lonza forecasts that the business will reach peak sales at the group’s future margin level by the mid-2030s.
The company said the expanded network would help it serve demand in areas including antibody-drug conjugates and other bioconjugates, viral vectors for cell and gene therapies, and advanced drug-delivery technologies. Lonza CEO Wolfgang Wienand described the acquisition as a fit with the company’s strategy and said it would bring the company closer to customers while strengthening its manufacturing network.
For Merck KGaA, the divestment is intended to sharpen the focus of its Life Science business while giving the CDMO operations a platform for their next stage of development. Group CEO Kai Beckmann said the business’s teams had established a strong foundation and that Lonza was positioned to build on it.
The transaction is expected to close in mid-2027, subject to customary closing conditions. Lonza plans to fund the acquisition with cash on hand and existing credit facilities, and said it would maintain its BBB+ rating.