Lonza Completes its Transformation to a Pure-Play CDMO with Agreement to Divest Capsules & Health Ingredients

Lonza Group AG / Key word(s): Strategic Company Decision/Share Buyback Lonza Completes its Transformation to a Pure-Play CDMO with Agreement to Divest Capsules & Health Ingredients 06-March-2026 / 18:05 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR

• Lonza signs agreement to divest its Capsules & Health Ingredients (CHI) business to Lone Star Funds, for an enterprise value of CHF 2.3 billion (USD 3 billion) at closing. The transaction is expected to close in H2 2026
• Lonza will receive upfront proceeds of CHF 1.7 billion (USD 2.2 billion) and retain a 40% stake in CHI, with an additional preferential participation in a future exit
• Total undiscounted proceeds, including upfront and all future proceeds at full exit, are expected to be at or above CHF 3 billion (~USD 4 billion)
• With the divestment of CHI, Lonza delivers on its commitment to transform into a pure-play CDMO, focused on value creation from high growth and expanding margins in its world-leading CDMO business
• Lonza plans to invest the upfront proceeds into additional organic growth opportunities in line with the One Lonza Strategy, as well as bolt-on acquisitions. CHF 500 million will be returned to shareholders through a share buyback following receipt of proceeds
• As part of its wider portfolio transformation, Lonza has also signed agreements to divest the Personalized Medicines business (the Cocoon Platform), the MODA software platform, and the small molecules micronization site in Monteggio (CH)

Basel, Switzerland, 6 March 2026 – Lonza has entered into a definitive agreement to divest its Capsules & Health Ingredients (CHI) business to Lone Star Funds (“Lone Star”) for an enterprise value of CHF 2.3 billion (USD 3 billion). Lonza will realize upfront cash proceeds of CHF 1.7 billion (USD 2.2 billion) and retain a 40% stake in the business, with additional preferential participation in its future exit. Lonza’s proceeds on exit are subject to Lone Star receiving an initial return equal to its equity investment. The combination of significant upfront proceeds with the preferential participation in future exit proceeds and the sale of the retained stake in CHI at future exit provide an attractive value upside and future cash generation. Considering the leading position and strengths of the CHI business after its return to growth in 2025, the total undiscounted value of the proceeds for Lonza from the full exit from CHI, including upfront proceeds, proceeds from future sale of its retained 40% stake and preferential participation in exit proceeds, is expected to be at or above CHF 3 billion (~USD 4 billion).