 "Amyris & Nikkol Group form cosmetics ingredient JV")
Amyris Inc, which produces specialty ingredients and consumer products from plant sugars, has signed a definitive agreement to establish a cosmetic ingredients joint venture with Nikkol Group, a leading Japanese cosmetic specialty chemical provider. Nikkol will purchase 50 percent of the Amyris Neossance business for up to $ 20 million in total. Amyris will receive $10 million of the purchase price upfront and the remaining $10 million is structured as an earn out over the first three years of the joint venture operation.
“Nikkol is an ideal partner for this joint venture and is the leading channel partner for our squalane business. This agreement is another key step among several in our stated plan to build greater value for our business, and ensure access to partner-driven growth capital while positioning the company to significantly expand product sales. This aligns with our strategy of focusing our business on partnering with the world's leading companies to accelerate our product sales growth while lowering our operating costs. We expect squalane sales through to end customers to continue growing at better than 50 percent annually while our expenses will be reduced by over $1.5 million annually as a result of this partnership,” said John Melo, president and CEO, Amyris.
Shizuo Ukaji, president & CEO of Nikko Chemicals Co Ltd in Nikkol, added, “Nikkol has been involved in the sugarcane-based squalane business since the product's inception by Amyris and we believe this is an opportune time to join forces. By working together, we believe the additional financial, marketing, innovation, and business development synergies will lead to a significant expansion in market applications.”
Nikkol has been a long-term distributor of Amyris's cosmetic ingredients in the Japanese market and a key partner of Amyris in helping grow the business. As a world leader in personal care ingredients segment, it is anticipated that Nikkol's participation in the joint venture will support even greater sales growth while further establishing a market leadership position.