US: DSM acquires Amyris’s flavour and fragrance bio-based business

The acquired business consists of seven intermediate products, two just launched and one under development

Dutch nutrition, health, and materials giant DSM is acquiring the flavour and fragrance bio-based intermediates business of Amyris, the Nasdaq-listed fermentation-based ingredients company.

Royal DSM stated the acquisition extends its aroma ingredients offerings into bio-based ingredients for the flavour and fragrance and cosmetics industries.

Gareth Barker, president DSM personal care and aroma ingredients, said: “We are pleased that we can extend the offering to our customers with an additional seven important intermediates that will help our flavour and fragrance and cosmetics customers to improve their sustainability profile. These bio-based ingredients provide them with attractive and sustainable additional alternatives.”

The acquired business consists of seven intermediate products, two just launched, and one under development, which will be added to DSM’s existing personal care and aroma ingredients activities.

Heerlen-headquartered DSM will acquire the business for an upfront consideration of $150 million. Amyris will share in the EBITDA growth over the period 2021-2024 of some of the activities (mainly the products just launched and under development), receiving additional earn-outs equal to nine-times the realised EBITDA in 2024, which is estimated to result in a total earn-out amount of $100-150 million.

DSM and Amyris will continue their R&D partnerships.

In recent years DSM acquired Amyris’s Farnesene business and technology for nutritional and flavour and fragrance ingredients, as well as its Brotas biotechnology manufacturing facilities in Brazil.

DSM has produced several flavour and fragrance products for Amyris in this facility.