Platinum Equity Acquiring Lonza’s Water Care Business
Announced earlier this month, Platinum Equity has entered into an agreement with Lonza to acquire Lonza’s Water Care business and operations for $630 million, including Lonza’s French Water Care business.
With headquarters in Alpharetta, Georgia, Lonza Water Care has six manufacturing facilities in key regions, including North America, South America, EMEA and South Africa, with sales locations in all regions globally and with approximately 1,200 employees.
“We are putting the Water Care business in the hands of an experienced owner who will develop Water Care as a stand-alone business while focusing on innovation and further growth,” says Richard Ridinger, CEO of Lonza. “We believe that we have found the optimal partner for the business to give new perspectives to the global sites and its employees.”
This May Lonza announced that an investment bank would advise on all options regarding its Water Care business as part of an active portfolio management approach. Lonza decided now to divest the Water Care business as part of its long-term strategy to grow sustainably along the healthcare segment.
Lonza acquired the Water Care business as part of its acquisition of Arch Chemicals in 2011 and developed it as part of the Specialty Ingredients segment. The business provides offerings for recreational water, as well as for industrial, municipal, commercial and surface water treatments.
Platinum Equity is a global private equity firm with a highly specialized focus on business operations. The firm has substantial carve-out expertise, with more than 20 years’ experience acquiring and operating businesses that have been part of large corporate entities.
“We are looking forward to working with Water Care’s experienced management team to further grow the business and strengthen its unique positioning in residential pool care and industrial water markets around the world,” says Jacob Kotzubei, partner for Platinum Equity. “Lonza’s Water Care business has tremendous value as a standalone company.”
Platinum Equity operates each of its portfolio companies independently and will apply this approach to the Water Care business with the goal of creating long-term, sustainable value. This agreement provides the Water Care team the opportunity to fully focus on further growing the business, innovative product portfolio and global footprint in both residential and industrial water treatments. Water Care’s business unit head, Christian Wichert, and his experienced management team will continue to lead the business.
The agreement is expected to close in the first quarter of 2019, subject to customary closing conditions. The process is expected to be seamless to customers. Platinum Equity said that ensuring consistency, continuity and quality will be a priority following closing.