Amyris And DSM Close Significant Strategic Transaction To Accelerate The Growth Of Natural, Sustainable Ingredients
EMERYVILLE, Calif., March 31, 2021 /PRNewswire/ -- Amyris, Inc., (Nasdaq: AMRS), a leading synthetic biotechnology company active in the Clean Health and Beauty markets through its consumer brands and a top supplier of sustainable and natural ingredients, today announced that it has signed and closed an agreement with DSM Nutritional Products Ltd., a subsidiary of Royal DSM (AEX: DSM) for the exclusive rights to supply Amyris's product portfolio of flavor and fragrance (F&F) ingredients. Amyris will continue to develop, scale and manufacture future molecules with its existing partners and DSM.
The total transaction value is estimated at over $500 million from short and long-term contributions with approximately 1/3 as an upfront payment at closing, more than 1/3 from potential earn-out payments based on milestones over the three year period from 2022 through 2024, and the remainder attributable to a 15-year manufacturing agreement between Amyris and DSM and the expected value of developing and scaling a pipeline of new F&F molecules through collaboration agreements.
Amyris will continue to develop, scale-up and produce all existing ingredients in its F&F portfolio with the support of DSM and Amyris's current F&F partners. Amyris's F&F partners have extended their current R&D collaboration agreements by 15 years to accelerate the development of future F&F ingredients. DSM will be responsible for the commercial relationship with Amyris's current partners. The parties expect that the combination of DSM's market reach and Amyris's proprietary synthetic biology and fermentation platform will accelerate the industry's transition to clean, sustainable chemistry.
"DSM is a critical strategic partner for Amyris and understands the unique capabilities of our technology," said John Melo, President and Chief Executive Officer of Amyris. "This is our largest strategic transaction to date and further validates the significant value our product portfolio delivers. Consumers are increasingly demanding clean and sustainable chemistry that delivers the highest purity and performance for the products they purchase. Both of our companies are deeply committed to accelerating adoption of clean chemistry across the largest and fastest-growing product categories in the world. This transaction and our first quarter performance are expected to deliver almost half of our total expected sales revenue for the full year 2021."
The completion of this F&F transaction combined with the previously consummated Farnesene transaction in December 2020 delivers close to $200 million in upfront cash payments with the expected earn-out payments positioned to support our planned growth over the next few years. BNP Paribas Securities Corp. acted as the exclusive financial advisor to Amyris on the transaction.
Amyris, the Amyris logo, No Compromise, Biossance, Pipette, and Purecane are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries.
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SOURCE Amyris, Inc.
Company Codes: NASDAQ-NMS:AMRS, EuronextAmsterdam:DSM, OTC-PINK:RDSMY