Bain buys DSM Sinochem Pharmaceuticals

A person familiar with the situation confirmed that Bain Capital Europe IV was used for the transaction, the vehicle closed on €3.5bn in 2014.

Royal DSM and Sinochem each owned a 50% stake in DSM Sinochem Pharmaceuticals. The deal was expected to generate close to €600m, including earn-outs, according to a report by Unquote sister publication Mergermarket.

DSM disclosed to its shareholders that it will receive about €250m for its equity stake, excluding an earn-out, estimated at around €50m, and transaction costs. DSM expects to receive approximately €275m in cash following closing, including repayment of debt and after-transaction costs.

The sale process was conducted by Rothschild, which marketed the asset based on €70-80m EBITDA, according to Mergermarket.

With roots that date back to 1869, Royal DSM develops, produces and sells intermediates, active pharmaceutical ingredients and finished dosage form pharmaceuticals. In 2017, the company generated sales of approximately €8.6bn and employs approximately 15,000 employees.

Founded in 1951, Sinochem is a China-headquartered conglomerate primarily engaged in the production and trading of chemicals and fertilisers, and the production of oil. The business generates revenues of around €59bn and employs 60,000 people.

Company
DSM Sinochem Pharmaceuticals is specialised in beta-lactam antibiotics, and also provides statins and anti-fungals. DSP develops, produces and sells intermediates, active pharmaceutical ingredients and finished dosage form pharmaceuticals. The business has headquarters both in Singapore and Delft, and operates manufacturing sites and sales offices in China, India, the Netherlands, Spain, the US and Mexico.

People
DSM Sinochem Pharmaceuticals – Karl Rotthier (CEO).
Bain Capital Private Equity – Benjamin Kunstler (managing director).  

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