BASEL, SWITZERLAND (July 12, 1 p.m. ET) — Lonza Group Ltd. plans to buy Arch Chemicals Inc. for $47.20 per share in cash.
Arch Chemicals' board has unanimously recommended Lonza's cash offer to its shareholders, according to a July 12 news release from Basel-based Lonza.
Lonza said the acquisition significantly strengthens and balances its life science portfolio, with the products and technologies of the two companies “highly complementary” to each other.
The combined businesses will be able to develop innovative microbial control formulations based on a broad portfolio of registered and approved active ingredients.
Lonza said it expects “substantial cost synergies of at least $50 million a year,” by the second year with additional savings through combined portfolio and enhanced product offerings.
Lonza is a leading supplier to the pharmaceutical, healthcare and life science industries.
Arch Chemicals major business is in biocides, but it also has a performance urethanes division which supplies polyether polyols for non-foam applications in, for example, coatings for gymnasium floors or urethane in-line skate wheels and bowling balls.