DSM Pharmaceutical Products, Patheon Combine to Form DPxBy
The private equity firm JLL Partners and Royal DSM have closed on their $2.65-billion deal, announced in November 2013, which combines DSM Pharmaceutical Products and Patheon Inc. into a new privately held company named DPx Holdings B.V. (DPx).
DPx is 51% owned by JLL and 49% by Royal DSM. With headquarters in Durham, North Carolina, DPX's global footprint includes 24 global locations across North America, Europe, Latin America, and Australia with approximately 8,000 employees. The company is led by DPx CEO Jim Mullen, former CEO of Patheon, and will be run as an independent standalone company. DPx is the parent company name and includes the business units Patheon, DSM Fine Chemicals, and Banner Life Sciences.The newly combined company has pro-forma sales of approximately $2 billion.
In terms of the transaction, JLL contributed $500 million in equity to DPx, and DSM contributed DSM Pharmaceutical Products and received approximately $115 million in cash and $75 million of preferred partnerships interest, thereby valuing DSM Pharmaceutical Products at $670 million.DPx effected a plan of arrangement pursuant to the Canada Business Corporations Act with Patheon under which DPx acquired Patheon for $9.32 per share in cash, resulting in a total enterprise value for Patheon of approximately $1.98 billion.