Specialty chemicals and vitamins group DSM is spinning off its pharmaceuticals arm to create a $2.6bn new company in a joint venture with private equity group JLL.

The new company will have anticipated annual sales of around $2bn and will be 51% owned by JLL and 49% by DSM.

The new company has not yet been named but will be formed by combining DSM’s pharmaceutical products group with drugs firm Patheon in which JLL is a majority shareholder. The deal values DSM’s pharmaceuticals activities at $670m

The new firm will operate in 23 different locations worldwide and have a workforce of 8,300, DSM said in a statement. It will operate as an independent stand-alone company and Patheon chief executive Jim Mullen will take the top job.

After the deal is completed early next year, DSM will have three divisions: nutrition, polymers and performance materials.