Lonza Deals for Arch Chemicals

Monday, July 11, 2011 @ 05:07 PM gHale

Basel, Switzerland-based specialty chemicals and biotechnology company Lonza Group Ltd. will pay $1.2 billion to pick up the Norwalk, CT-based Arch Chemicals Inc., a maker of antibacterial products.

Lonza said it will have about $1.6 billion in annual revenue from sales of bacteria-killing products, making it one of the leaders in that market.

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Arch Chemicals reported $1.38 billion in revenue in 2010, and Lonza said $1.2 billion of that total came from sales of products used to kill harmful bacteria in water, in industrial applications, for wood protection, and for personal care.

Lonza said the market for antibacterial products is growing steadily and is worth about $10 billion per year.

Arch Chemicals has approximately 3,000 employees and 23 manufacturing and research sites.

“This transaction represents an excellent strategic and cultural fit,” said Stefan Borgas, chief executive of Lonza. “Lonza and Arch Chemicals offer highly complementary products and technologies and together will be the global leader in controlling unwanted microbes.”

“We are pleased to have reached this agreement with Lonza, a company that knows our business well and shares our commitment to continuous improvement in innovation, operational excellence, safety and sustainability,” said Michael Campbell, chairman, president and chief executive of Arch Chemicals.

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