(Bloomberg) -- Buyout firm Bain Capital has reached an agreement to buy pharmaceutical joint-venture of Dutch chemicals firm Royal DSM NV and China's Sinochem Group.
The purchase of the closely held business, known as DSM Sinochem Pharmaceuticals or DSP, is expected to close in the fourth quarter, Bain said in a statement Friday that didn't disclose terms of the deal. DSP was expected to fetch about 600 million euros ($698 million), including payments conditional on the future performance of the business, said a person familiar with the matter who asked not to be identified because the matter was private.
Singapore-based DSP develops and sells antibiotics, statins and anti-fungals as well as pharmaceutical ingredients, according to its website. It has manufacturing sites in countries from China and India to Egypt, the Netherlands and the U.S. The joint venture was formed in 2010, when DSM sold a 50 percent stake in its penicillin operation to Sinochem Group, ending a six year-search for a partner.
Sinochem said in a statement that all DSP shares have been sold to Bain. A DSM representative didn't immediately respond to a request for comment.
--With assistance from Andrew Noël, Melissa Mittelman and Jared S. Hopkins.
To contact the reporters on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Dinesh Nair at dnair5@bloomberg.net, Michael Hytha, Matthew Monks
©2018 Bloomberg L.P.
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