Bain, Cinven Near Deal for $4.4 Billion Lonza Ingredients Unit

(Bloomberg) -- Bain Capital’s consortium with Cinven is nearing a deal to acquire Lonza Group AG’s specialty ingredients unit, bringing a close to one of the most hotly-contested sales in European chemicals, people familiar with the matter said.

An agreement could be announced as soon as Monday, according to the people. The deal could value the business at more than 4 billion Swiss francs ($4.4 billion), the people said, asking not to be identified discussing confidential information.

Shares of Lonza have risen 40% in Zurich trading over the last 12 months, giving the company a market value of about 42 billion francs. Lonza’s American depositary receipts jumped 5.4% in New York trading Monday.

Representatives for Bain and Cinven declined to comment, while a spokesperson for Lonza couldn’t immediately be reached for comment.

The Lonza business manufactures chemicals for use in everything from paints to crop protection. Its microbial control solutions are also used in professional cleaning products and sanitizers, which have attracted strong demand amid the coronavirus pandemic.

A host of private equity firms had been pursuing the unit, including Lone Star Funds, Partners Group Holding AG and Carlyle Group Inc., Bloomberg News previously reported. There had also been interest from buyout firm Advent International, German chemicals group Lanxess AG and Malaysian state oil producer Petronas.

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