The Deal: DSM, JLL Join to Create Pharma Company
NEW YORK (The Deal) -- Dutch chemicals and nutrition company Royal DSM NV is to merge its pharmaceuticals division into a new entity majority owned by New York-based private equity firm JLL Partners Inc. to create a company valued at $2.62 billion.
DSM said Tuesday, Nov. 19, that it will combine DSM Pharmaceutical Products, or DPP, with JLL-backed Patheon Inc., after the new entity acquires Patheon for $9.32 per share in cash, or 64% above Patheon's closing share price Monday. The transaction values Patheon at about $1.95 billion, including debt, and DPP at $670 million.
JLL, which owns 55.7% of Patheon, will invest $489 million in cash in the new venture, while DSM will contribute DPP and receive a seller note of $200 million.
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