DSM has acquired the flavors and fragrance portfolio from health and beauty biotech company Amyris.
The purchase has been valued at an estimated $500 million over short and long-term contributions, with 1/3 paid at deal closing, more than 1/3 from potential earn-out payments over a three-year period, and the reminder via a 15-year manufacturing agreement between the two companies.
As part of the deal Amyris will continue to develop, scale-up and produce all existing ingredients in its flavors and fragrance portfolio, supported by DSM and Amyris’ current partners.
The acquisition is said to expand DSM’s offerings in Aroma ingredients with bio-based ingredients in the flavour, fragrance and cosmetic industries.
According to a statement, “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.”
John Melo, President and Chief Executive Officer of Amyris, said, “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.”