Amyris, Inc., a leading synthetic biotechnology company, announced that it has signed and closed an agreement with DSM Nutritional Products Ltd., a subsidiary of Royal DSM. The agreement addresses the exclusive rights to supply Amyris’s product portfolio of flavor and fragrance (F&F) ingredients. Amyris is active in the Clean Health and Beauty markets through its client brands and a top provider of sustainable and natural ingredients. Amyris will proceed to develop, scale and manufacture future molecules with its existing partners and DSM.

The total transaction amount is estimated at over $500 million from short and long-term contributions with about 1/3 as an upfront payment at closing, more than 1/3 from potential earn-out payments based on milestones over the three years from 2022 through 2024. The remainder is attributable to a 15-year manufacturing agreement between Amyris and DSM and the expected amount of developing and scaling a pipeline of new F&F molecules through collaboration agreements.

Amyris is looking forward to developing, scale-up and produce all existing ingredients in its F&F portfolio with the help of DSM and Amyris’s current F&F partners. F&F partners of Amyris have extended their current R&D collaboration agreements by 15 years to stimulate the development of future F&F ingredients. DSM will be liable for the commercial relationship with Amyris’s current partners. The parties anticipate 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.

John Melo, President and Chief Executive Officer at Amyris, stated that DSM is a critical strategic partner for Amyris and understands the unique capabilities of their technology. He further added that this is their largest strategic transaction to date and further validates their product portfolio’s significant value. Consumers are increasingly demanding clean and sustainable chemistry that delivers the highest purity and performance for the products they purchase. Both of their companies are deeply committed to accelerating the adoption of clean chemistry across the most significant and fastest-growing product categories in the world. This transaction and their first-quarter performance are expected to deliver almost half of their 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 gives close to $200 million in upfront cash payments. It is expected earn-out payments are positioned to support their planned growth over the next few years. BNP Paribas Securities Corp. served as the exclusive financial advisor to Amyris on the transaction.

About DSM

Royal DSM, a global, purpose-led, science-based company, is active in Nutrition, Health, and Sustainable Living. The company holds an aim to build brighter lives for all. With its solutions and products, DSM addresses some of the world’s biggest challenges while simultaneously creating economic, environmental, and societal value for all its stakeholders – customers, employees, shareholders, and society at large. 

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About Amyris

Amyris is a leading science and technology company in the research, development, and production of sustainable ingredients for the Clean Health & Beauty and Flavors & Fragrances markets. The company uses an exciting array of exclusive technologies, including robotics, state-of-the-art machine learning, and artificial intelligence. Their ingredients are included in over 3,000 products from the world’s top brands, reaching more than 200 million consumers. 

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