Amyris sells flavors and fragrance business to DSM
“We are pleased that we can extend the offering to our customers with an additional seven important intermediates that will help our flavor and fragrance and cosmetics customers to improve their sustainability profile,” says Gareth Barker, President of DSM Personal Care & Aroma Ingredients, in a statement posted to DSM’s site today.
“These bio-based ingredients,” he says, “provide [fragrance and cosmetics customers] with attractive and sustainable additional alternatives.”
The acquisition adds 7 new intermediates to the DMS flavor and fragrance portfolio, 4 of which have successfully been commercialized at scale.
A next step in the DSM – Amyris relationship
Amyris was founded in 2003; and over the years the synthetic biotech company has partnered with DSM several times on ingredient develop and production (or R&D) projects for the health, nutrition, and beauty industries. The partnerships began in earnest when in May of 2017 when DSM made an equity investment in the biotech company.
This isn’t the first time DSM has acquired pieces of the Amyris business. Also in 2017, DSM purchased an Amyris production facility in Brazil, as Cosmetics Design reported at the time. And as today’s online statement from DSM note, “DSM has been producing several F&F products for Amyris in this facility.”
Costs and advantages of the DSM – Amyris flavors and fragrances deal
Following today’s deal, the R&D partnership will continue. More importantly perhaps are the advantages the acquisitions brings to DSM in terms of biotech flavor and fragrance inputs as well as in terms of the chemicals company’s overall environmental sustainability.
As DSM highlights online the acquisition:
(the following is taken verbatim from the company’s online statement about the deal)
Further strengthens DSM’s globally-leading biotechnology base with F&F intermediate products and increases the scale of DSM’s biotechnology activities in nutritional ingredients;
Broadens DSM’s existing offerings in Aroma Ingredients with additional biotechnology-based products for DSM’s – already existing – F&F customer base;
Strengthens DSM’s sustainability profile further, as bio-based F&F ingredients offer additional alternatives to chemistry-based products as well as botanically-sourced ingredients.
DSM’s upfront consideration for the business in $150m. And through 2024 Amyris will continue to share in the EBITDA growth of the business and receive an estimated total earn-out of $100 - $150m.