Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, announced that it has reached an agreement to acquire the flavour and fragrance (F&F) bio-based intermediates business of Amyris, Inc., which extends DSM’s offerings in Aroma Ingredients with bio-based ingredients for the flavour and fragrance and cosmetics industries.

DSM will acquire the business currently consisting of seven intermediate products (four already generating meaningful sales and EBITDA, two just launched and one under development) which will be added to DSM’s existing Personal Care & Aroma Ingredients activities.

DSM will acquire the business for an upfront consideration of US$ 150 million, which represents an estimated 15x EV/EBITDA 2021 multiple. Amyris will share in the EBITDA growth over the period 2021-2024 of certain of the activities (mainly the products just launched/ under development), receiving additional earn-outs equal to 9x the realized EBITDA in 2024, which is estimated to result in a total earn-out amount of US$ 100-150 million. DSM and Amyris will continue their R&D partnerships.

In recent years DSM acquired Amyris’ Farnesene business and technology for nutritional and F&F ingredients, as well as its Brotas (Brazil) biotechnology manufacturing facilities. DSM has been producing several F&F products for Amyris in this facility. Acquiring now the entire F&F business from Amyris is synergetic for DSM as it:

• Further strengthens DSM’s globally-leading biotechnology base with F&F intermediate products and increases the scale of DSM’s biotechnology activities in nutritional ingredients;
• Broadens DSM’s existing offerings in Aroma Ingredients with additional biotechnology-based products for DSM’s – already existing – F&F customer base;
• Strengthens DSM’s sustainability profile further, as bio-based F&F ingredients offer additional alternatives to chemistry-based products as well as botanically-sourced ingredients.