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
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.”
Acquisition Overview
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.
Advisors
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.
Forward‐Looking Statements
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210811005872/en/
For Danimer: Investors ir@danimer.com Phone: 229-220-1103
Media Anthony Popiel apopiel@daltonagency.com Phone:
404-876-1309
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