Royal DSM and JLL Partners, through a $2.65 billion transaction, have created DPx, a global CDMO headquartered in Durham, NC, with a footprint that includes 24 locations across North America, Europe, Latin America and Australia. DPx is 51% owned by JLL and 49% by Royal DSM.
Jim Mullen, former chief executive officer of Patheon, will lead DPx as chief executive officer, and it will be run as an independent company. DPx is the parent company that includes the business units Patheon, DSM Fine Chemicals, and Banner Life Sciences.
DPx provides APIs and services for finished dosage drug products to pharma and biopharma companies, with a specialization in softgel formulations for OTC, 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, said, "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, said, "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 Mr. Mullen, chief executive officer 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."