Brazil: Bio-Based Intermediates DSM Acquires Brazilian Production Facility from Amyris
Royal DSM and the industrial bioscience company Amyris have enhanced their strategic alliance through the sale of Amyris Brasil Ltda to DSM and the establishment of a long-term manufacturing partnership for Amyris’ high-volume products.
Heerlen/The Netherlands — Amyris Brasil Ltda owns and operates the Brotas 1 production facility and intellectual property related to farnesene — a bio-based key intermediate for many applications. The consideration for the company amounts to $ 58 million plus an additional value share arrangement over a three-year period amounting to $ 37.5 million. In addition to the consideration upfront, there is potential for a future value share.
According to the acquiring company, existing supply-agreements to would continue. DSM will also supply Amyris with specialty compounds until it realizes its Brotas 2 specialties production facility. The bioscience company is accelerating the construction of its second facility dedicated to specialty products while maintaining the manufacturing process development and business support capability located in Campinas, Brazil.
Subject to customary conditions, the transaction is expected to close in the next few months.
With the acquisition of the Brotas 1 facility, the Dutch company adds a state-of-the-art biotechnology-based production site in Brazil to its global network, with abundant availability of sustainable raw materials (sugar cane), securing production capacity for its rich pipeline of sustainable and bio-based solutions. Having broad experience in operating large-scale fermentation plants, the manufacturer will optimize the operational performance of the site.
The strategic alliance started in May 2017 with an equity investment, and has since been expanded with several product development collaborations.
With the sale of the Brotas 1 facility, which was designed to produce high volumes of farnesene, together with the creation of a long-term production relationship for high-volume farnesene-based intermediates Amyris intends to focus on its core strength of developing bioscience technologies through a portfolio approach that continues to target key markets, as well as the production of specialty products.