DPT, headquartered in San Antonio, Texas, will retain itsmanagement personnel and will not lose jobs. The financial details of the deal,announced July 5, were not disclosed.
Paul Dorman, former CEO of DPT, said in a statement that thecompany was not planning a sale of DPT when it first started discussions withRoundTable about future opportunities. The move came out of the blue becauseRenaissance and DPT are competitors in the drug development industry.
The new company will be renamed Renaissance Pharma. As aresult of the transaction, DPT's former parent company, DFB Pharmaceuticals,will maintain what has been described as a "meaningful interest" in the combinedbusiness and will provide oversight and counsel through representation onRenaissance's board of directors.
"We are extremely proud of DPT's growth and contribution tothe San Antonio community over the past 22 years," DFB Group President andCo-Founder John W. Feik says. "This investment by Renaissance indicates aconfidence level in the local healthcare workforce and in San Antonio, whichhas proven to be a great location for the operations we have developed in theareas of pharmaceutical research, development and manufacturing. Thispartnership provides the resources we need to accelerate our long-termstrategic plans, which include maximizing our semisolid and liquid business inSan Antonio, and achieving aggressive growth in our sterile and specialtyproducts business in Lakewood, N.J."
Pierre Frechette, president and CEO of RenaissanceAcquisition Holdings, agrees.
"As we review investment opportunities, we look foroutstanding companies that deliver a value-added proposition, with strongmanagement teams and excellent reputations in the markets in which theycompete," Frechette says. "As a market leader in the contract development andmanufacturing space, DPT's experienced management team has established aworld-class reputation in semisolids and liquids, as well as a sterile businesswith an outstanding regulatory track record that is poised for significantgrowth. Partnering with DPT to invest in its continued growth and success is aperfect fit with our strategy of building companies for the long term."
DPT's capabilities in sterile and non-sterile products, aswell as soon-to-be-added parenteral drug manufacturing capabilities, were thekey motivations for the deal from Renaissance's perspective, Frechette says.
Paul Johnson, group president and COO of DPT, emphasizesthat the deal is expected to boost DPT's growth potential.
"Renaissance and its management team bring a depth ofindustry experience, including a specific understanding of the contractmanufacturing and development space, along with a successful history ofpartnering with companies like ours to help them grow," Johnson says.