Dutch-based multinational DSM announced on Tuesday that it was spinning off its pharmaceuticals division to American private equity firm JLL Partners. The deal was reportedly worth USD2.6 billion. 

According to Reuters, the company created after the spin off would be developing and manufacturing drugs, ranging from active ingredients to drug dosages, under contract. The new entity is expected to gain USD2 billion in annual sales. 

DSM has been looking for a partner to help expand its pharmaceutical business particularly in the Asian Region, the report said. 

JLL is the majority shareholder in US-based contract drug manufacturer Patheon. It has a total of USD3.13 billion assets under management, based on its company profile. 

DSM has spent over EUR2.2 billion on acquisitions since it shifted strategy in 2010. The company has veered away from lower-margin bulk chemicals and focused more on less cyclical businesses like food ingredients and high-end plastics, Reuters said. 

Last year, DSM registered a revenue of EUR9.13 billion and has a total of EUR11.96 billion assets under management, based on its annual report.