Lonza, the Basel-based chemical and biotechnology company, has agreed to buy Arch Chemicals in the United States for $1.2 billion (SFr1 billion) in cash.
The takeover will create the world’s biggest microbial-control business.
Lonza, the world’s biggest maker of drug ingredients, said on Monday it would pay $47.20 a share, 12 per cent higher than the closing price on Friday.
Shares of Connecticut-based Arch surged 11 per cent on Friday, the most in 14 months. Arch’s products are used to kill microbes in swimming pools, protect wood from fungus and to deter the growth of mold and mildew in paint.
The deal will make Lonza the leader in a market valued at $10 billion that is growing as much as six per cent a year. It will allow the Swiss company to expand its non-pharmaceutical business, Lonza said.
“Lonza and Arch Chemicals offer highly complementary products and technologies and together will be the global leader in controlling unwanted microbes,” Lonza
CEO Stefan Borgas said. “The business will be a strong platform for accelerated future growth.”
Lonza shares fell 1.1 per cent to SFr66.05 in Zurich on Monday morning. Before Monday, the stock had fallen 8.2 per cent this year, giving the company a market value of SFr3.5 billion.
swissinfo.ch and agencies