$2.65B transaction combines the capabilities and expertise of Patheon and DSM Pharmaceutical Products to create industry powerhouse
DPx Holdings B.V. (DPx), privately owned by JLL Partners and Royal DSM, recently launched as a leading global contract development and manufacturing organization (CDMO) for the pharmaceutical and related industries. DPx is the result of a USD $2.65B transaction between JLL Partners, a leading middle-market private equity firm, and Royal DSM, the global Life Sciences and Materials Sciences company. DPx is 51 percent owned by JLL Partners and 49 percent by Royal DSM. With headquarters in Durham, N.C., DPx’s global footprint includes 24 locations across North America, Europe, Latin America and Australia with more than 8,000 employees.
Formerly known by its provisional name “NewCo,” DPx is the corporate parent of a group of business units that is comprised of three distinct brands focused on pharmaceutical services, fine chemicals and products and proprietary technologies. These units are the result of combining DSM Pharmaceutical Products (DPP), Patheon and Banner Life Sciences. The company’s business unit structure is as follows:
Pharmaceutical services will operate under the Patheon brand name and include the commercial manufacturing (CMO) capabilities, pharmaceutical product development services (PDS) as well as Biosolutions and Biologics (Bio) businesses of DPP; Fine chemicals, or the ES/IM and active pharmaceutical ingredients (API) businesses, which will operate under the brand name DSM Fine Chemicals; and Proprietary products and technologies, which will operate under the Banner Life Sciences brand name.
Patheon is the industry’s end-to-end supplier providing an integrated supply chain model to customers. Patheon delivers a full spectrum of pharmaceutical development and manufacturing services ranging from active pharmaceutical ingredients (API), Biologics and Biosolutions, as well as pharmaceutical product development services (PDS) and commercial manufacturing (CMO) capabilities. Additionally, DSM Fine Chemicals will handle complicated APIs and finished dosage forms for customers while Banner Life Sciences will offer its own proprietary and nutraceutical products to the market.
“This is an exciting day for our customers and employees. We believe that combining the capabilities and experience of both Patheon and DPP immediately positions us as the pharmaceutical industry’s partner of choice,” said Jim Mullen, CEO of DPx. “Today we are better positioned to add scale, new value chain capabilities and technologies, as well as expand our end-to-end service offerings to our customers as a global, comprehensive solution provider to the industry.”
DPx’s 2014 sales are anticipated to be about USD $2B (pro-forma). The structure is organized around the customer’s needs and operational efficiency.
“We are thrilled to announce the close of this landmark deal,” said Paul S. Levy, Managing Director of JLL Partners. “It is the result of much hard work and strategic foresight and is a demonstration of how we increase value through investment in growth and market positioning.”
“We are eager to build on the strong reputation each of our businesses has with existing customers,” said Stefan Doboczky, DPx board member and member of the DSM Managing Board. “We understand companies are seeking collaborative relationships with their suppliers, and we are truly committed to helping them navigate the challenges posed by the ever-changing nature of the healthcare marketplace.”
DPx is the privately held parent company of the Patheon, Banner Life Sciences, and DSM Fine Chemicals businesses. The company is a leading provider of CDMO services, pharmaceutical products and products for other industries. Founded in 2014 as a result of a deal between JLL Partners and Royal DSM, DPx has three core business units, comprised of Patheon Pharma Services, DSM Fine Chemicals and Banner Life Sciences. With global headquarters in Durham, N.C., DPx has a footprint of 24 locations across North America, Europe, Latin America and Australia with more than 8,000 employees. DPx offers customers unsurpassed quality, integrated offerings and value through these three core business units. For more information, visit www.patheon.com/DPx.
Patheon is a leading provider of contract development and commercial manufacturing (CDMO) services to the global pharmaceutical industry for a full array of solid and sterile dosage forms. Patheon, a DPx business unit, encompasses the combined CMO capabilities and pharmaceutical product development services (PDS), as well as the Biosolutions and Biologics (BIO) business. For more information, visit http://www.patheon.com.
About DSM Fine Chemicals
Announced in March 2014 as a business unit under the DPx umbrella, DSM Fine Chemicals provides active pharmaceutical ingredients (API) as well as ES/IM products and services that are primarily comprised of agricultural and crop protection chemicals. Its main focus is custom synthesis aimed at pharma and fine chemicals markets, of which the agro-chemicals sector is a primary focus. ES/IM also produces maleic anhydride and derivatives.
About Banner Life Sciences
Banner Life Sciences’ mission is to advance human health with innovation and creativity generating value for society and investors. Acquired by Patheon in December 2012, Banner Life Sciences is DPx’s proprietary products business. For more information, visit http://www.bannerls.com.
About JLL Partners
JLL Partners is a middle-market private equity firm with a 25 year track-record of adding value to complex investments through financial and operational expertise. Since its founding in 1988 by Paul S. Levy, JLL Partners has committed approximately USD 4.2 billion across six funds, and developed significant expertise in the healthcare and other sectors. JLL is a control investor and sources its deals from its deep network of industry contacts, applying its proven, value-oriented and growth driven investment approach to provide limited partners with attractive risk-adjusted returns throughout all investment cycles. For more information, visit http://www.jllpartners.com/.
About Royal DSM — Bright Science. Brighter Living.
Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in Life Sciences and Materials Sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM’s 23,500 employees deliver annual net sales of around €9B. For more information, visit www.dsm.com.
SOURCE: Patheon Inc.