Lonza and global private equity firm have entered into a definitive agreement for Platinum Equity to acquire Lonza's Water Care business and operations for $630 million, according to a joint release. The inclusion of Lonza’s French business in is still under discussion.
Lonza’s Alpharetta, Ga.-based Water Care business has six manufacturing facilities, global sales reach and approximately 1,200 employees. The business is a leading provider of water-treatment chemicals in residential pool care. The agreement is expected to close in the first quarter of 2019, subject to customary closing conditions.
“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. We believe that we have found the optimal partner for the business to give new perspectives to the global sites and its employees," said Richard Ridinger, CEO of Lonza. Ridinger added that the divestment will allow his company to focus on the healthcare market.
Lonza got into the Water Care business when it acquired Arch Chemicals in 2011.
Platinum Equity is a global private equity firm with approximately USD 13 billion of assets under management and a highly specialized focus on business operations. The firm has 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,” said Platinum Equity Partner Jacob Kotzubei. “Lonza's Water Care business has tremendous value as a standalone company."
