Dutch speciality chemicals company Royal DSM and Emeryville, California-headquartered biotechnology company Amyris Inc. have extended a strategic alliance they formed in May through the $58m (€49m) 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 (€31.7m).
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” biotechnology-based production site in Brazil to its network, and give the company access to an abundant supply of sustainable raw materials from sugar cane.
Having broad experience in operating large-scale fermentation plants, the Dutch materials supplier said it planned to “optimise” the operational performance of the site.
The strategic alliance between DSM and Amyris started in May 2017 with a €25m 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 annum of farnesene, Amyris is expected to focus on developing breakthrough bioscience technologies targeting key markets.
Amyris is currently constructing its Brotas 2 manufacturing facility in Campinas, Brazil which is dedicated to speciality products.
“This transaction completes a planned shift from operating a plant originally designed to produce high volumes of farnesene, to producing an expanding number of high-value, speciality ingredients,” said John Melo, Amyris president & CEO.