Danimer Scientific Completes Acquisition of Biodegradable Polymer Producer Novomer
Combination of Danimer’s application development expertise with Novomer’s processes and materials is expected to enable Danimer to increase output of biodegradable materials at lower production and capital costs
BAINBRIDGE, Ga.--(BUSINESS WIRE)-- Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the “Company”), a leading next generation bioplastics company focused on the development and production of biodegradable materials, today announced that it has completed the acquisition of Novomer, Inc. (“Novomer”), a leading developer of conversion technology providing transformable, functional and low net carbon inputs into the production of PHA-based resins and other biodegradable materials. Novomer develops high-performing, carbon-efficient, cost-effective polymers and chemicals, including poly(3-hydroxypropionate) (“p(3HP)”), a type of polyhydroxyalkanoate (“PHA”).
Stephen E. Croskrey, Chief Executive Officer of Danimer, said, “Completing this acquisition is an important step forward in accelerating our plan to deliver high-quality biodegradable products to leading consumer product clients. The transaction increases the economic value of our expansion while reducing the dollar risks of commodity inputs in our process. This transaction enables Danimer to continue our development and deployment of products for consumer packaging and other applications that the marketplace is demanding.”
Jeff Uhrig, formerly CEO of Novomer and now General Manager and President of Danimer Scientific Catalytic Processes following the closing, said, “The closing of this transaction will allow us to hit the ground running so we can recognize the extraordinary benefits of this combination. I want to thank the superb teams at Danimer and Novomer for their hard work to finalize this transaction. Together, we are excited to continue our efforts to commercialize this technology at scale to help reduce plastic waste on our planet.”
Per the definitive agreement announced on July 28, 2021, Danimer acquired Novomer in a cash transaction for $152 million, subject to customary adjustments. The acquisition includes Novomer’s research center and pilot plant in Rochester, New York, which produces high-performing, carbon-efficient, cost-effective polymers and chemicals such as p(3HP), its library of over 240 patents and patents pending, and a team of approximately 20 professionals including scientists, engineers and technicians.
Second Quarter 2021 Earnings Conference Call
Danimer will discuss the acquisition during a review of the Company’s second quarter results on a webcast and conference call at 5:00 p.m. Eastern Time on Monday, Aug. 16, 2021. The live webcast can be accessed on the Investor Relations section of the Company’s website at https://ir.danimerscientific.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-877-407-9208 or 1-201-493-6784, respectively. Upon dialing in, please request to join the Danimer Scientific Second Quarter 2021 Earnings Conference Call. The archived webcast will be available for replay on the Company's website after the call.
Piper Sandler & Co. served as financial advisor and Kane Kessler, P.C. served as legal advisor to Danimer. Cooley, LLP served as legal advisor to Novomer.
About Danimer Scientific
Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer’s technology can be found in a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. After the acquisition of Novomer, Danimer now holds more than 390 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.
Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company’s exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company’s business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carryforwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
Source: Danimer Scientific, Inc.
Released August 11, 2021