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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV