JLL creates new pharma business through DSM spin out, Patheon acquisition

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drug pill pharma tablet medical health vitaminMid-market private equity firm JLL Partners has invested almost $500m in a new business formed by Dutch food and chemicals group DSM spinning out its pharmaceuticals arm.

JLL will own 51 per cent of DSM Pharmaceutical Products, with DSM retaining a 49 per cent stake and will receive a $200m seller note, valuing the business at $670m.

DPP has already entered an agreement to buy Canadian pharmaceutical manufacturing business Patheon for $9.32 per share, giving the business a total enterprise value of about $1.95bn.

Financing for that deal was secured from JP Morgan, UBS, Jefferies, Morgan Stanley and KeyBank.

JLL chairman Paul Levy, who is chairman of the Patheon board, said, “This partnership demonstrates JLL’s commitment to building companies that create value, fill unmet needs and drive excellence within their respective industries.

“This is the strategic initiative and execution ‘know how’ that stakeholders have come to expect from JLL.

“NewCo is poised to transform the CDMO industry and we are excited to bring these two entities together.”

Earlier this year New York-listed financial services group TSYS agreed to acquire prepaid debit card company NetSpend from JLL for $1.4bn.

JLL Partners earned about $349m from the deal according to Bloomberg.

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