DSM and JLL to create pharma services company in $2.6 billion transaction

20 November 2013

USA-based private equity firm JLL Partners and Dutch life and material science group Royal DSM have announced the creation of a new company, which will be a leading global contract development and manufacturing organization (CDMO) for the pharmaceutical industry with anticipated sales of around $2 billion. The transaction is valued at $2.6 billion.

The name of the firm (provisionally called NewCo) will be announced in the coming months. NewCo will be formed by combining DSM’s business group DSM Pharmaceutical Products (DPP) with Patheon (TSX: PTI), after a successful completion of the transaction.

It will be 51% owned by JLL and 49% by DSM. JLL will contribute $489 million in cash to NewCo and DSM will contribute DSM Pharmaceutical Products (DPP) and receive a seller note of $200 million, thereby valuing DPP at $670 million.

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