EAST RUTHERFORD, N.J., Oct. 24 (UPI) -- New Jersey's Cambrex Corp. said Tuesday it is selling its bioproducts and biopharma businesses to Lonza Group AG for about $460 million.
Cambrex said it expects net proceeds, after paying taxes and transaction-related costs, of about $450 million, which will be used to repay all outstanding debt under the company's existing credit facility and to help fund a special dividend to stockholders.
The sale of the bio businesses, which is subject to Cambrex stockholder approval and customary regulatory approvals, is expected to close in 90 to 120 days.
Upon completion of the deal, Cambrex will concentrate on deploying its resources to maximize the potential of the "Human Health" business through reducing overhead by approximately $8 million per year and refocusing and streamlining the business.
