Chemical manufacturer Lonza has sold its water-care division to private equity.
The Beverly Hills, Calif.-based firm Platinum Equity has agreed to purchase the manufacturer’s water care business for $630 million. Lonza divested the operations as part of a plan to focus on its core businesses, which are related to health care.
The deal is expected to close the first quarter of 2019.
While Lonza’s corporate headquarters are in Basel, Switzerland, the chemical business is based in the Atlanta suburb of Alpharetta, Ga. It includes six manufacturing plants and many sales locations around the globe. It employs approximately 1,200.
“We are putting the Water Care business in the hands of an experienced owner who will develop Water Care as a stand-alone business while focusing on innovation and further growth,” said Lonza CEO Richard Ridinger.
Platinum Equity said it plans to operate the water-care business independently, with the current management team, including unit head Christian Wichert, still in charge.
“We are looking forward to working with Water Care’s experienced management team to further grow the business and strengthen its unique positioning in residential pool care and industrial water markets around the world,” said Jacob Kotzubei, a Platinum Equity Partner. “Lonza’s Water Care business has tremendous value as a stand-alone company.”
Lonza has only held the water-care business since 2011, when it purchased Arch Chemicals. In addition to chemicals for pools and spas, it also produces water treatment products for industrial, commercial, municipal and surface water applications.
