Lonza buys Merck KGaA's US CDMO network, doubling its American footprint
What's the deal? Swiss contract manufacturer Lonza has signed a definitive agreement to acquire five US contract development and manufacturing (CDMO) sites from Merck KGaA, Darmstadt, GermanyDealroom has a profile for this one. Try Dealroom →. The deal, announced November 3, 2026, values the assets in the low- to mid-triple-digit millions of Swiss francs.
What changes? The acquisition more than doubles Lonza's US CDMO footprint from four sites to nine and adds roughly 1,100 employees, lifting its American workforce above 6,000.
What's the endgame? The deal strengthens Lonza's end-to-end offering in the US — the largest market for innovative drugs — adding capabilities in bioconjugates, antibody-drug conjugates, payload-linkers, and viral vectors for cell and gene therapies. Those areas had been gaps in its domestic network.
For Merck KGaA, the sale sharpens its focus. "A more concentrated Life Science portfolio will allow us to focus our investments on building our scientific leadership," said group chief executive officer Kai Beckmann.
Why now? Drugmakers increasingly want integrated manufacturing and geographically diversified supply. The purchase builds on Lonza's 2024 acquisition of Roche's large Vacaville, California, biologics plant and a recently announced spray-drying facility in Bend, Oregon.
Chief executive officer Wolfgang Wienand framed it as a disciplined bet. "This acquisition is a strong fit with our One Lonza Strategy and reflects our disciplined approach to capital allocation," he said, adding that the sites would help support customers "from innovation to launch and commercial supply."
The signal: At a modest valuation, this is a targeted capability-and-footprint expansion rather than a transformative bet. It reflects a broader CDMO push to build out US capacity as pharma buyers seek resilient, domestically rooted supply chains. The transaction is expected to close in mid-2027, subject to customary conditions.
Read more: in.marketscreener.com
Image credit: Generated with Gemini
