DSM Sells Pharmaceutical Division in $2.60 Billion Agreement
The Netherlands’ Royal DSM have announced that they have sold their pharmaceutical unit to the US private equity firm, JLL Partners, as part of an agreement worth around $2.60 billion.
They plan to set up a new, as-yet-unnamed, organisation that will combine the DSM Pharmaceutical Products (DPP) division with Patheon, a services company that is majority-owned by JLL.
The new company will be led by Jim Mullen, chief executive of Patheon and a former CEO of Biogen Idec.
By selling the unit, which is currently valued at $670 million, Royal DSM will retain a 49% stake in the new company, with JLL investing $489 million into the venture, which in turn will acquire Patheon, whose “total enterprise value” is roughly $1.95 billion.
DSM claims that this will create “a leading global contract development and manufacturing organisation”, with 2014 sales of about $2 billion. The company will offer finished dosage to active substances and have a global footprint of 23 locations and 8,300 employees.
Feike Sijbesma, DSM’s chief executive, noted that the deal maximises value for the group’s business, which has seen the group focus more on health and nutrition as opposed to chemicals and materials.
Links:
www.dsm.com
www.pharmatimes.com