US-based bioplastics company Danimer Scientific has agreed to acquire biodegradable polymer producer Novomer for $152m in cash.
Novomer manufactures polymers and chemicals such as poly(3-hydroxypropionate) (p(3HP)), a type of polyhydroxyalkanoate (PHA), which can be sourced from renewable or non-renewable feedstocks.
The company, which employs around 20 people, manufactures products in its pilot plant in Rochester, New York, using its proprietary Novo22 catalyst and intelligent process.
Novomer has more than 100 issued patents and more than 140 patents pending.
Danimer CEO Stephen Croskrey said: “This is an important acquisition for Danimer that advances our strategy of providing biodegradable solutions to the plastics industry to help solve the global plastic waste crisis.
“Paired with Danimer’s leadership in application development, we will now have the potential to provide an even broader range of products with improved barrier properties for packaging and other uses at a lower cost, all while using less energy and delivering biodegradability.
“In addition, we expect that Novomer’s simplified manufacturing and operational processes will accelerate our ability to scale our production capabilities and to do so at a much lower average capital expenditure for each pound than we had previously forecast.”
The deal has been approved by each company’s Board of Directors and is expected to be completed in the third quarter of this year, subject to regulatory approvals and other customary closing conditions.
Once the deal is completed, Novomer CEO Jeff Uhrig will continue to lead the Novomer team in coordination with Danimer’s senior leadership. Mr Uhrig will report to Mr Croskrey.
Mr Uhrig said: “We’re thrilled to join Danimer and its outstanding team, who share our commitment to the development and manufacturing of biodegradable products.
“Danimer is at the forefront of the bioplastics industry as a premium biopolymer supplier and we look forward to leveraging its valuable resources and go-to-market expertise to scale efficiently together and address growing global blue-chip customer demand for our solutions.”