CMO born from $2.6 billion merger comes on the scene as DPx
|DPx CEO Jim Mullen--Courtesy of Patheon|
A new company, initially dubbed NewCo and created by the $2.6 billion merger of contract manufacturer Patheon ($PTI) and Netherlands-based DSM Pharmaceutical Products, has officially broken onto the scene. It has been given the moniker of DPx and starts its corporate life as one of the largest contract manufacturing and development groups in the world.
DPx is 51% owned by private investment group JLL Partners and 49% by Royal DSM. JLL contributed Patheon and Banner Life Sciences, and led a group of investors who have put $500 million into the deal. According to Bloomberg, one of JLL's funds extracted $731 million with the finalization of the merger. Royal DSM anted up its DSM Pharmaceutical Products.
The new company comes online with 24 locations across North America, Europe, Latin America and Australia, and more than 8,000 employees. It is projecting $2 billion in 2014 revenues. Jim Mullen, Patheon CEO since 2011, has been elevated to CEO of DPx. The company will be based in Durham, NC, where Patheon has its headquarters.
The company said in a statement that DPx will be the parent with three branded businesses underneath its umbrella. Patheon will run the CMO operations, DSM Fine Chemicals the active pharmaceutical ingredient operations and Banner Life Sciences will oversee proprietary products and technologies. Patheon bought softgel formulation specialist Banner in 2012 for $255 million.
There is an expectation that DPx will be on the hunt for bolt-ons to get even bigger. JLL cofounder Paul Levy said when the deal was announced in November that the group saw opportunity in the fragmented CMO industry and expected to make acquisitions as opportunities presented.