In Georgia, polyhydroxyalkanoates bioplastics company Danimer Scientific has signed a definitive agreement to acquire Novomer, Inc., a New York-based producer of polymers and chemicals, including PHA poly(3-hydroxypropionate). The transaction is valued at $152 million. Both boards have approved the deal.
Danimer says Novomer’s p(3HP) is “highly complementary” to Danimer’s products and can be incorporated as a component in certain Danimer resins. “Nodax®, Danimer’s signature PHA, and Novomer’s p(3HP) have different properties and attributes: Nodax® has strong performance and biodegradability properties, making it possible to be used across diverse end-use applications, while p(3HP) has improved barrier properties and is a lower cost non-fermented input,” Danimer adds. “By incorporating Novomer’s p(3HP) into Danimer’s customer solutions, Danimer expects to have greater flexibility to meet an even broader range of customer needs, and also expects to be able to produce its resins at a substantially lower cost. Additionally, by blending these inputs, Danimer will reduce the amount of fermentation required in the production of its resins.”
Danimer also said its previously announced greenfield construction plans for Bainbridge, Georgia will use fewer fermenters and add capacity for Novomer products. “This transaction and the resulting modifications are expected to meaningfully reduce Danimer’s planned capital expenditures on a per-pound basis while increasing the anticipated overall volume of finished product it will be able to deliver when also taking into account the completion of its Kentucky Phase II expansion,” Danimer adds.