DPx is 51% owned by JLL and 49% by Royal DSM. With
headquarters in Durham, N.C., DPX's global footprint includes 24
global locations across North America, Europe, Latin America and
Australia. 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.
DPx provides a unique breadth of offerings from
finished dosage (drug products) to active substances (APIs) with a
wide range of technologies and offers comprehensive end-to-end
solutions to a broad spectrum of companies ranging from large
pharmaceutical and biotech companies to specialty pharma companies,
generics and emerging pharma companies. It is a leader in
proprietary softgel formulations for over-the-counter, prescription
and nutritional consumer products through the Banner Life Sciences
business.
Stefan Doboczky, Member of the DSM Managing Board
and responsible for DSM's Pharma interests, commented: "I am proud to witness the formation of DPx, a global top
CDMO organization which will create substantial value for all
stakeholders. With this partnership DSM made another major step
implementing our strategy for our Pharma activities, growing via
partnerships. Our customers will greatly benefit from DPx's
unmatched depth and breadth of capabilities and services. I am
convinced that this exciting new venture will be ideally positioned
to help customers succeed with their unique needs."
Paul S. Levy, Managing Director of JLL Partners,
shared: "I am delighted
that we have been able to combine Patheon with the pharmaceutical
assets of DSM. This transaction is truly accretive with fundamental
business logic. With DSM, JLL Partners has now created a global
leading pharmaceutical contract manufacturer with the broadest
product offering for our many and diverse customers. Our management
team, representing the best talent from each company, is proven and
completely committed to this enterprise. JLL is proud to have been
chosen by DSM, a major Dutch multinational with a storied past, as
a partner, and we look forward to rapidly integrating the two
businesses and building aggressively thereafter."
"Starting 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," said Jim Mullen, CEO of DPx. "We will lead the way in changing how services are
purchased by our customers and in doing so we will create great
value for our customers and enhance our leadership position. This
key strategic principle will drive future growth and position us as
the global leader in the CDMO industry, with offerings unmatched by
our competitors."
The highlights of the now completed USD 2.65
billion transaction are as follows:
- DPx is owned by JLL (51%) and DSM
(49%)
- JLL contributed USD 500 million in equity to DPx
and DSM contributed DSM Pharmaceutical Products (DPP) and received
approximately USD 115 million in cash and USD 75 million of
Preferred Partnerships Interest, thereby valuing DPP at USD 670
million
- DPx effected a Plan of Arrangement pursuant to
the Canada Business Corporations Act ("POA") with Patheon under
which DPx acquired Patheon for USD 9.32 per share in cash resulting
in a total enterprise value for Patheon of approximately USD 1.98
billion (about €1.43 billion)
- DPx is well positioned to achieve integration,
synergy and operational efficiency goals
DSM financial
information
DSM expects the transaction to be
accretive to its earnings per share from 2015 onwards. DSM will
present the investment in DPx as an associated account in
accordance with the equity method. Under IFRS rules also DSM
Sinochem Pharmaceuticals was deconsolidated from 1 January 2014.
Consequently, the reporting of the Pharma cluster in the core
EBITDA of DSM has been discontinued from the beginning of
2014.
About
DPx
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 http://www.patheon.com/DPx.
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.
DSM - Bright Science.
Brighter Living.(TM)
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 simultaneously. DSM delivers
innovative solutions that nourish, protect and improve performance
in global markets such as food and dietary supplements, personal
care, feed, medical devices, automotive, paints, electrical and
electronics, life protection, alternative energy and bio-based
materials. DSM's 24,500 employees deliver annual net sales of
around €10 billion. The company is listed on NYSE Euronext. More
information can be found www.dsm.com.
For more
information:
DSM Corporate Communications
Herman Betten
tel. +31 (0) 45 578 2421
e-mail media.relations@dsm.com |
DSM Investor Relations
Dave Huizing
tel. +31 (0) 45 5782864
e-mail investor.relations@dsm.com |
JLL Partners
Dan Agroskin
tel. +1 212 210 9369
e-mail d.agroskin@jllpartners.com |
DPx Media Relations.
tel. +1 919 226 3200
e-mail media@patheon.com |