Lonza Group (LONN) investor relations material

Deal rationale and strategic fit

• Acquires five U.S. CDMO sites and associated businesses from Merck KGaA, expanding bioconjugation, high-potency payload-linker, viral-vector and non-viral delivery capabilities.

• Expands the U.S. network from four to nine CDMO sites, adding end-to-end clinical-to-commercial capabilities for bioconjugates and other modalities.

• Adds established infrastructure, experienced teams and customer programs, strengthening customer proximity and global network resilience.

• Complements existing capabilities in Visp and the U.S. cell and gene network, as well as investments in Vacaville and Bend.

Financial terms and conditions

• Enterprise valuation in the low-to-mid triple-digit millions of CHF, payable in cash; funded from cash on hand and existing credit facilities, with the BBB+ rating commitment reaffirmed.

• FY2028 sales expected at ~CHF 250m; positive Core EBITDA margin, initially below the group level, with negligible contribution and insignificant margin dilution.

• No change to the 2026 outlook, Organic Growth Model or mid-term ambitions; planned share buyback following the Capsules & Health Ingredients divestment remains unaffected.

Synergies and expected cost savings

• Integration into the global operating model is expected to broaden customer pipelines, lift site utilization and progressively improve sales and profitability.

• Combined capabilities are expected to offer broader development-to-commercial pathways across regions and modalities.