Lonza has agreed to acquire five US contract development and manufacturing sites from Merck KGaA, Darmstadt, Germany, more than doubling its US CDMO footprint.
The transaction values the sites and associated businesses in the low- to mid-triple-digit millions of Swiss francs. It is expected to close in mid-2027, subject to regulatory approval and other customary conditions, according to a Lonza announcement.
Approximately 1,100 employees will transfer to Lonza, increasing the company’s US CDMO workforce to more than 6,000. Its number of US manufacturing sites will rise from four to nine.
The acquired network covers several complex modalities. The St. Louis, Missouri, operation provides bioconjugation services, while facilities in Madison and Verona, Wisconsin, manufacture high-potency payload-linkers used in antibody-drug conjugates.
The Carlsbad, California, site provides end-to-end viral vector services, including aseptic fill-finish. The Indianapolis, Indiana, facility supports lipid nanoparticles, liposomes, and PEGylated proteins, also with fill-finish capabilities.
Lonza said the businesses will strengthen its ability to support products from clinical development through commercial manufacturing, particularly in areas where it expects continued demand, including antibody-drug conjugates and cell and gene therapies.
“This acquisition is a strong fit with our One Lonza Strategy and reflects our disciplined approach to capital allocation,” said Lonza CEO Wolfgang Wienand.
The acquired sites are expected to generate approximately CHF250 million in sales in 2028. Lonza said their core EBITDA margin will initially be below the group average but expects profitable growth as the operations are integrated and existing capacity is used more fully. Further investment will depend on market demand.
For Merck KGaA, the divestment forms part of an effort to concentrate its Life Science portfolio on consumables, technologies, and services rather than contract manufacturing.
“A more concentrated Life Science portfolio will allow us to focus our investments on technologies and capabilities that build on our scientific leadership,” said Jean-Charles Wirth, CEO of Merck KGaA’s Life Science business, in a press release.
Merck KGaA will continue supplying products and services to pharmaceutical, biotechnology, and CDMO customers, including Lonza. Its BioReliance Contract Testing Services business is excluded from the transaction and will remain within its Life Science portfolio.
Until the acquisition closes, the businesses will continue to operate independently. The companies said maintaining customer programs and supply continuity will be a priority during the transition.
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