DSM has acquired Amyris Brasil Ltda along with the establishment of a long-term manufacturing partnership for Amyris' products to help improve the DSM and Amyris partnership.
DSM’s plan with the Brotas 1 facility acquisition is to optimize the operational performance of the site. Having the biotechnology-based production site in Brazil provides sustainable raw materials, such as sugar cane availability and securing production capacity for its pipeline of sustainable and bio-based solutions.
The Brotas 1 facility was designed to produce high volumes of farnesene—a bio-based key intermediate for many applications—which provides Amyris the ability to focus on developing bioscience technologies through a portfolio approach, continuing to target key markets, as well as the production of specialty products.
A value share arrangement over a three-year period amounted to $37.5 million considers Amyris Brasil Ltda with the ownership and operation of the Brotas 1 production facility, in addition to property related to farnesene, a bio-based key intermediate for many applications, which adds up to $58 million. The upfront consideration is totaled to $96 million with potential for future value share with Amyris’ business model.
DSM will carry on with current supply-agreements to Amyris and other parties, while also supplying Amyris with specialty compounds until it develops its Brotas 2 specialties production facility. In addition to its focus on specialty products, this facility will also maintain the manufacturing process development and business support capability in Campinas, Brazil. Amyris is working on speeding up the construction process, and subject to customary conditions, the transaction is expected to close by early 2018.
Further Insights
“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,” said Chris Goppelsroeder, president and CEO of DSM Nutritional Products. “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.”
“We are very pleased with the continued expansion of our strategic alliance with DSM,” said John Melo, president and CEO, Amyris. “This manufacturing partnership and the sale of our Brotas 1 factory allows us to accelerate the development and manufacturing of specialty, high-performance ingredients. We are building a specialty plant at Brotas (Brotas 2) and also expect to complete our São Martinho plant to focus on sweeteners. The combination of these actions provides us the manufacturing footprint to meet our current demand through the next three-five years and to manage this within our funding constraints.”
“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, specialty ingredients,” added Melo. “This shift will allow Amyris to improve returns and cash flows in order to continue to provide sustainable growth for Amyris and its partners.”
