Combination of Danimer’s application development expertise with Novomer’s processes and materials is expected to enable Danimer to increase output of biodegradable materials at lower production and capital costs
Danimer Scientific Completes Acquisition of Biodegradable Polymer Producer Novomer. (Credit: Gerd Altmann from Pixabay)
Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the “Company”), a leading next generation bioplastics company focused on the development and production of biodegradable materials, today announced that it has completed the acquisition of Novomer, Inc. (“Novomer”), a leading developer of conversion technology providing transformable, functional and low net carbon inputs into the production of PHA-based resins and other biodegradable materials. Novomer develops high-performing, carbon-efficient, cost-effective polymers and chemicals, including poly(3-hydroxypropionate) (“p(3HP)”), a type of polyhydroxyalkanoate (“PHA”).
Stephen E. Croskrey, Chief Executive Officer of Danimer, said, “Completing this acquisition is an important step forward in accelerating our plan to deliver high-quality biodegradable products to leading consumer product clients. The transaction increases the economic value of our expansion while reducing the dollar risks of commodity inputs in our process. This transaction enables Danimer to continue our development and deployment of products for consumer packaging and other applications that the marketplace is demanding.”
Jeff Uhrig, formerly CEO of Novomer and now General Manager and President of Danimer Scientific Catalytic Processes following the closing, said, “The closing of this transaction will allow us to hit the ground running so we can recognize the extraordinary benefits of this combination. I want to thank the superb teams at Danimer and Novomer for their hard work to finalize this transaction. Together, we are excited to continue our efforts to commercialize this technology at scale to help reduce plastic waste on our planet.”
Acquisition Overview
Per the definitive agreement announced on July 28, 2021, Danimer acquired Novomer in a cash transaction for $152 million, subject to customary adjustments. The acquisition includes Novomer’s research center and pilot plant in Rochester, New York, which produces high-performing, carbon-efficient, cost-effective polymers and chemicals such as p(3HP), its library of over 240 patents and patents pending, and a team of approximately 20 professionals including scientists, engineers and technicians.
Advisors
Piper Sandler & Co. served as financial advisor and Kane Kessler, P.C. served as legal advisor to Danimer. Cooley, LLP served as legal advisor to Novomer.
Source: Company Press Release