Danimer Scientific to acquire biodegradable polymer producer Novomer
The deal aims to expand PHA maker Danimer's bioplastics offerings.
Bioplastics supplier Danimer Scientific Inc. has acquired Novomer Inc., a developer of PHA-based resins and other biodegradable materials, in a cash transaction valued at US$152 million.
Headquartered with a pilot plant in Rochester, N.Y., Novomer develops polymers and chemicals, including poly(3-hydroxypropionate), which is a type of PHA, that are sourced from renewable or non-renewable feedstocks. The firm – which has about 20 employees – has more than 100 issued patents and over 140 patents pending.
“[We] believe that Novomer’s p(3HP) is highly complementary with [our] inputs, and can be incorporated as a component in certain Danimer resins,” officials with Danimer said in a July 28 news release. “Additionally, by blending these inputs, Danimer will reduce the amount of fermentation required in the production of its resins.”
Given these benefits, the news release said, Danimer will likely modify its greenfield construction plans for its new facility in Bainbridge, Ga., to include fewer fermenters and expand Novomer’s production capacity.
“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,” Danimer CEO Stephen Croskrey said. “Further, 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 per pound than we had previously forecast.”
Novomer CEO Jeff Uhrig will report to Croskrey and will continue to lead the Novomer team in coordination with Danimer’s senior leadership.
The transaction is expected to close in the third quarter of 2021.