Bain Buys DSM Sinochem Pharmaceuticals
US private investment group Bain Capital has signed a definitive agreement to buy DSM Sinochem Pharmaceuticals (DSP), a 50:50 joint venture between the Dutch chemical and life science company and China’s Sinochem Group.
Full financial terms have not been disclosed although DSM said it would receive about €250 million for its stake, excluding an earn-out (estimated at €50 million) and transaction costs.
DSP develops, produces and sells intermediates, APIs and finished dosage form pharmaceuticals. The jv, which employs around 2,000 staff and generated sales of about €440 million in 2017, has manufacturing sites and sales offices in the Netherlands, Spain, USA, Mexico, India and China.
“We believe that DSP has tremendous potential to grow organically and through acquisitions, thanks to its strong production technology, product quality and its focus on providing pharmaceutical customers with reliable solutions to their increasingly complex supply chains,” said Benjamin Kunstler, managing director at Bain Capital.
The transaction is expected to close in the fourth quarter, subject to the usual regulatory approvals.
In separate news, DSM has become the largest shareholder in Mixfit, a US personalized nutrition company, following the purchase of approximately 50% of shares.
The investment builds on a partnership announced in March that combines DSM’s expertise in essential micronutrients with Mixfit’s technology for analyzing health data in real time. Mixfit’s Intelligent Nutrition Assistant (Mina) analyzes a person’s genetic makeup, along with diet, lifestyle and health goals to create and dispense a customized nutritional drink containing a mix of DSM’s Quali blends.
DSM said consumer demand for personalized nutrition – one of its key pillars for future growth and differentiation –is growing fast and that there are very few companies able to deliver solutions from production to consumer.
