Acquisition of the divisions Research Bioproducts and Microbial Biopharmaceuticals from Cambrex Corporation for US$ 460 million

Lonza Group, the global life sciences company, today announces an agreement with Cambrex Corporation (NYSE: CBM) to purchase its Research Bioproducts business and its Microbial Biopharmaceutical business for a cash consideration of US$ 460 million. In conjunction with the planned Initial Public Offering of Polynt S.p.A., these acquisitions will accelerate the group’s strategic development and transform Lonza into a focused life sciences business.


Acquisition of Research Bioproducts business from Cambrex

Acquisition of Microbial Biopharmaceuticals business from Cambrex

Combined cash consideration of US$ 460 million

Financed by existing cash and new fully underwritten credit facility

Polynt IPO on track

Guidance enhanced

Strategic and financial impact

Combined with the IPO of Polynt S.p.A. these proposed acquisitions will transform Lonza into a focused life sciences business and are expected to generate significant value for shareholders and have the following strategic and financial benefits:

Accelerated focus on life sciences: close to 90% of sales

Research Bioproducts acquisition delivers 17% EBIT margin

Immediate group EBIT margin uplift

EPS accretive from 2008

Positive EVA contribution from 2008

Sales growth guidance lifted to 8-12% p.a.

EBIT growth guidance lifted to mid-to-high teens p.a.

Sales and profitability growth sustainable into 2012

Stefan Borgas, CEO of Lonza, said:

“These acquisitions and the IPO of Polynt accelerate the delivery of Lonza’s strategic shift towards life sciences that we mapped out two years ago. The Biopharma business we are acquiring plays straight to our existing strengths, and the Research Bioproducts acquisition is a natural development in our core focus area. It extends our technology and value chain activities and gives us access to new high-growth complementary customer and product segments in the life sciences market. Together, these developments are transformational for Lonza; they are good for our employees, good for our customers and good for our shareholders.”

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