Industrial biotechnology company Verenium Corp. (San Diego, Calif.; www.verenium.com) today announced it has closed a transaction with DSM Food Specialties B.V., a business group of Royal DSM (Heerlen, The Netherlands; www.dsm.com), in which Verenium has sold to DSM its oilseed processing business, licensed certain enzymes for use in the food and beverage markets, and will provide access to new gene libraries to be developed by Verenium. Verenium will receive $37 million in total consideration, including transaction and related expenses, on Monday, March 26, 2012.
Following the transaction, Verenium’s business remains focused on providing novel enzymes in the areas of animal health and nutrition, grain processing and oilfield services.
Key terms of the agreement between the companies include:
- DSM has acquired Verenium’s oilseed processing enzymes, including Purifine PLC, product candidates, and the intellectual property covering these products and product candidates for use in the oilseed processing market. In addition, DSM has assumed Verenium’s existing oilseed processing customers and the Company’s partnership agreements with Bunge, Alfa Laval and Desmet Ballestra.
- Verenium has granted DSM exclusive licenses to its alpha-amylase and xylanase enzyme products for use in the food and beverage markets. Verenium retains certain rights to these products in markets outside of the food and beverage markets.
- Verenium and DSM have entered into a supply agreement for Verenium to manufacture the Purifine® PLC, alpha-amylase and xylanase products for DSM.
- Verenium will develop new gene libraries for use by DSM. Both companies will have full access to the libraries for the purpose of identifying new product opportunities. This transaction does not impact Verenium’s existing gene libraries.
The products acquired by DSM represented approximately $7.5 million in revenue to Verenium in 2011.