Royal DSM to buy Canadian drugmaker Patheon for $195M

Deal combines chemical company to create larger independent drug manufacturer.

AMSTERDAM, Netherlands — Dutch chemicals maker Royal DSM NV has struck a deal to buy Canada’s Patheon Inc. for $195 million, combine it with its own drug manufacturing operations, and spin them off into a new larger company.

Under the deal, DSM will contribute its own drug manufacturing operations – which are larger than those of Patheon – to the new company.

The private equity firm JLL will buy a 51% stake in the new company for $489 million. That money will be used to kick $200 million back to DSM and also to buy Patheon.

Patheon’s managers, who own a majority of their company, have agreed to the firms’ $9.32 per share takeover offer. That’s a 68% premium to Patheon’s closing price on Nov. 18.