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November 20, 2017 01:00 AM

DSM to buy Amyris' Brazilian production plant

Plastics News Europe
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    Amyris Inc
    Amyris Inc.'s Brotas 1 production facility.

    Dutch specialty chemicals company Royal DSM and Emeryville, Calif.-headquartered biotechnology company Amyris Inc. have extended a strategic alliance they formed in May through the $58 million sale of Amyris Brasil Ltda. to DSM.

    The deal covers the sale of Amyris Brasil Ltda., which owns and operates the Brotas 1 production facility and intellectual property related to farnesene — a bio-based key intermediate for many applications.

    The deal also considers an additional value share arrangement over a three-year period amounting to $37.5 million.

    Subject to customary conditions, the transaction is expected to close in the next few months.

    The acquisition of the Brotas 1 facility, DSM said, will add a “state-of-the-art” bio-based production site in Brazil to its network, and give the company  access to an abundant supply of sustainable raw materials from sugar cane.

    The Dutch materials supplier said it planned to “optimize” the operational performance of the site.

    The strategic alliance between DSM and Amyris started in May with an equity investment by DSM in Amyris, in return for technology supports in key markets including health, nutrition, and materials. The two companies have so far launched a number of product development collaborations.

    With the sale of the Brotas 1 facility, which produces 24 kilotonnes per year of farnesene, Amyris is expected to focus on developing breakthrough bioscience technologies targeting key markets.

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