DSM expands strategic alliance with Amyris and acquires Brazilian production facility from Amyris, by chemwinfo

The consideration for 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)

is US$ 58 million plus an additional value share arrangement

over a three-year period amounting to US$ 37.5 million

(aggregate upfront consideration of US$ 96 million).

In addition to the consideration upfront, there is potential

for a future value share in line with Amyris’ business model.

DSM will continue existing supply-agreements

to Amyris and other parties.

DSM will also supply Amyris with specialty compounds

until it realizes its Brotas 2 specialties production facility.

Amyris 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, DSM

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,

DSM will optimize the operational performance of the site.

The strategic alliance between DSM and Amyris started

in May 2017 with an equity investment by DSM in Amyris,

and has since been expanded

with several significant product development collaborations.

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

will enable Amyris to focus on its core strength

of developing breakthrough bioscience technologies

through a portfolio approach that continues

to target key markets,

as well as the production of specialty products.

Chris Goppelsroeder,

President & CEO of DSM Nutritional Products

“Following our equity investment in Amyris and

 subsequent product development cooperations,

 I am pleased  that we can add

 a state-of-the-art fermentation-based production facility

 to our network.

 Our know-how in fermentation, downstream process development

 and large-scale manufacturing will allow us to further

 improve the operational performance of the facility

 while further strengthening our strategic alliance with Amyris”.