NEW YORK (AP) — Swiss specialty chemicals and biotechnology company Lonza Group Ltd. says it will buy Arch Chemicals Inc., a maker of antibacterial products, for $1.2 billion in cash.
The deal values the Norwalk, Conn., company at $47.20 per share. Lonza says it will start a tender offer for Arch Chemicals shares by Friday, and it expects to complete the acquisition later in 2011.
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. It said Arch Chemicals reported $1.2 billion in sales of those products in 2010, and $1.4 billion in total revenue.
Shares of Arch Chemicals surged in recent days, and the stock gained $4.23, or 10 percent, to $46.40 in premarket trading.