Swiss pharmaceutical manufacturer Lonza Group said on Thursday it is buying Capsugel, a U.S. maker of capsule products and other drug delivery systems, for $5.5 billion in cash.
"The acquisition of Capsugel meets Lonza's strategic and financial goals," Lonza Chief Executive Richard Ridinger said in a statement.
"It accelerates our healthcare continuum strategy by giving us broader exposure to the fast-growing pharma and consumer healthcare markets."
Lonza said it intended to raise new capital of up to 3.3 billion Swiss francs to finance the deal, expected to close in the second quarter of 2017 subject to regulatory approval and closing conditions.
The deal includes refinancing of existing Capsugel debt of approximately $2 billion.
Lonza said it intended to maintain its current dividend policy and leverage of roughly three times net debt per earnings before interest, tax, depreciation and amortization.
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