DSM has agreed to make an initial equity investment in Amyris of $25 million, translating into a shareholding of ~12%. Subject to the satisfaction of certain conditions, DSM may invest an additional $25 million in Amyris. The first tranche is expected to close on Thursday, with a second tranche, if approved by DSM's Managing Board, expected to close within 90 days of the closing of the first tranche. As part of this investment, DSM will gain one board seat upon the closing of each tranche.
As part of the agreement, DSM and Amyris have agreed to focus on a number of short- to medium-term product development & production opportunities in vitamins and other nutritional ingredients.
"We are very excited about DSM's strategic focus in health and nutrition markets and its commitment to sustainable sourcing and production of better-performing products," said John Melo, Amyris president & CEO. "The Amyris technology platform and potential synergy can lead to significant cost improvements for DSM while accelerating Amyris's market access. We expect this will lead to incremental revenue in 2017, growing annually based on the number of products we develop in our partnership and our pace of delivery."
"Amyris has a unique yeast-based strain engineering platform that is very complementary to DSM's capabilities in this area and will create great synergy with DSM's know-how in fermentation, downstream process development and large-scale manufacturing," said Chris Goppelsroeder, president & CEO of DSM Nutritional Products. "Working closely together with Amyris and leveraging DSM's route-to-market, will accelerate our innovation towards cost-effective, fermentation-based processes for both existing and new products."