Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Merger or Acquisition (November 2013)
21 slides from Dsm-firmenich's merger presentation, Nov 19, 2013
Slide 1: DSM in motion: driving focused growth
DPP - DSM in motion: driving focused growth DSM and JLL create leading pharma services company in US$ 2.6bn transaction 19 November 2013 Page
Slide 2: Safe harbor statement
Safe harbor statement This presentation may contain forward-looking statements with respect to DSM’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions reade
Slide 3: Executive Summary 1/2
Executive Summary 1/2 • Royal DSM and JLL create leading pharma services company in US$ 2.6 bn transaction • This “NewCo” combines DSM Pharmaceutical Products (DPP) and Patheon Inc. in a leading DSM and global Contract Development and Manufacturing Organization (CDMO) company JLL • JLL Partners (JLL
Slide 4: Executive Summary 2/2
Executive Summary 2/2 • JLL will contribute US$ 489m in cash to NewCo • DSM will contribute DPP and receive a seller note of US$ 200m, thereby valuing DPP at US$ 670m • NewCo has entered into a definitive agreement to effect a Plan of Arrangement (POA) pursuant to the Canada Business Corporations Ac
Slide 5: Overview
Overview • Overview DSM Pharmaceutical Products (DPP) • Overview Patheon • NewCo: a strong combination • Deal structure Page 4
Slide 6: DPP at a glance
DPP at a glance • DSM Pharmaceutical Products (DPP) is a global leader in CDMO active in: – Drug products (finished dosages): steriles and orals – Active substances / active pharmaceutical ingredients (API): Chemical actives, microbial & mammalian biotech based actives – Intermediates for pharma and
Slide 7: DPP's History
DPP’s History • 1987 DSM acquires Andeno (CDMO-plant Venlo NL) • 1990s Expansion in pharma chemicals via acquisitions of BMS Regensburg, and Chemie-Linz in Austria (Intermediates and API) • 1998 Acquisition of Gist-Brocades including its microbial fermentation plant for API (Capua) • 2000 Acquisitio
Slide 8: DPP's portfolio of CDMO competences
DPP’s portfolio of CDMO competences • Finished Dosage (drug products): development & production – Strong position in solid dosage and steriles – Dedicated production buildings, lines, inspection and packaging – Aseptic cytotoxic line, closed delivery system, automated warehouse – Proven manufacturin
Slide 9: Overview
Overview • Overview DSM Pharmaceutical Products • Overview Patheon • NewCo: a strong combination • Deal structure Page 8
Slide 10: Patheon at a glance
Patheon at a glance • Patheon is a leading provider of contract development and commercial manufacturing services to the global pharmaceutical industry, with a focus on drug products (with a full array of solid and sterile finished dosage forms) • Through recent acquisition of Banner Pharmacaps – a
Slide 11: Patheon's history
Patheon’s history • 1974 Contract manufacturing business established in Fort Erie, Canada: Custom Pharmaceuticals Ltd. • 1980s Expansion CMDO operations in Canada, Europe and US • 1993 Change name to Patheon, listed at Toronto Stock Exchange • 1990’s Various acquisitions in finished dosages/ sterile
Slide 12: Patheon's portfolio of CDMO competences
Patheon’s portfolio of CDMO competences • Finished dosage commercial services, including – Commercial manufacturing services – Manufacturing, packaging – API sourcing support – Regulatory services • Finished dosage development services, including: – Early development services (incl. R&D services) –
Slide 13: Overview
Overview • Overview DSM Pharmaceutical Products • Overview Patheon • NewCo: a strong combination • Deal structure Page 12
Slide 14: NewCo: Creating leading global pharma CDMO
NewCo: Creating leading global pharma CDMO • NewCo will be a leading global contract development and manufacturing organization with anticipated 2014 sales of about US$ 2 billion (pro-forma) and a strong EBITDA and operational cash flow • NewCo will have a unique breadth of service offerings with a
Slide 15: NewCo: Serving attractive markets
NewCo: Serving attractive markets 30% CDMO API US$ 16bn ~ 8% annual growth API Value ~ US$ 53bn Global Captive API Pharmaceutical US$ 37bn Global Health 70% Spending Sales >US$ 5.3 trillion ~ US$800bn ~ 3% growth CDMO Finished Dosage 22% US$ 14bn ~ 7% annual growth Finished Dosage Value ~ US$ 64bn C
Slide 16: NewCo: Global CDMO footprint
NewCo: Global CDMO footprint Groningen, Netherlands Venlo, Netherlands SLA’s for R&D facilities in Delft, Geleen (NL) Swindon, England Linz, Austria Regensburg, Germany Patheon location Toronto, Canada Whitby, Canada DPP location Milton Park, England Parsippany, NJ Tilburg, Netherlands Tokyo, Japan
Slide 17: NewCo: A unique offering to the market
NewCo: A unique offering to the market • Contract manufacturing of • Contract manufacturing for active substances (APIs) for finished dosage ~ 30% of NewCo Sales ~ 45% of NewCo Sales • Pharmaceutical • Products: Banner development services (PDS) for finished dosage ~ 10% of NewCo Sales ~ 15% of NewC
Slide 18: Overview
Overview • Overview DSM Pharmaceutical Products • Overview Patheon • NewCo: a strong combination • Deal structure Page 17
Slide 19: Deal structure
Deal structure DSM and JLL form NewCo DSM • JLL provides US$ 489m equity capital to NewCo • JLL receives a 51% ownership of NewCo equity JLL US$ 200m Seller Note + 49% Equity Ownership Contributes DPP • DSM contributes DPP at US$670m • DSM receives 49% ownership of NewCo equity and a US$ 489m cash s
Slide 20: Wrap-up
Wrap-up • Royal DSM and JLL to create a leading global pharma services company, by combining DPP and Patheon, in a US$ 2.6bn transaction • NewCo will be optimally positioned to be a comprehensive solution provider to the industry • NewCo offers the best option for substantial value creation for DSM:
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