Firm will combine with Patheon to provide manufacturing services

Speciality chemicals producer DSM has agreed a deal with private equity firm JLL to spin out its pharmaceuticals division into a new company. The deal brings together contract service provider Patheon with DSM’s pharma section, which the Dutch company has been building up with recent acquisitions.

Under the agreement, JLL will buy out the minority share of Patheon that it does not already own and set up a new company – provisionally named NewCo – which will be 49% owned by DSM and 51% by JLL. The deal gives the new company a solid geographic base across 23 sites in North America, Europe, Latin America and Australia, with a view to expanding into Asia.

The company will function as a service provider to the pharmaceutical industry, offering contract manufacturing sevices that range from active ingredients to finished dosage forms, particularly building on Patheon’s expertise in softgel capsules.