BP and Verenium Corporation today announced an agreement for BP Biofuels North America to acquire Verenium’s cellulosic biofuels business, including the Company’s facilities in Jennings, LA and San Diego, CA for $98.3 million. Verenium will retain its commercial enzyme business, including its biofuels enzymes products and have the right to develop its own lignocellulosic enzyme program. Verenium will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement.
The major terms of this agreement include: BP will acquire the following:
- Jennings, LA facilities, including the pilot plant and the demonstration-scale facility as well as the San Diego, CA R&D facilities;
- Cellulosic biofuels technology and related IP; and
- Cellulosic enzyme technology and related IP.
In addition, BP would retain scientists and technologists needed to continue the biofuels development program.
Verenium will retain / receive the following:
- The core commercial enzyme business, including the personnel and supporting technology required to develop the business, including for applications in the biofuels segment;
- $98.3 million payment from BP;
- $10.8 million in cash (currently restricted) to be released upon assignment of its lease for the San Diego facility to BP;
- The ability to access select biofuels products developed by BP using the technology it is acquiring from Verenium; and
- The ability to transition out of the San Diego, CA facility over the next two years.
BP will become the sole investor in Vercipia Biofuels, a 50-50 joint venture formed by BP and Verenium in February 2009, and will independently manage all of Vercipia’s activities going forward. Similarly, Galaxy Biofuels, a 50-50 joint development company owned by BP and Verenium, will be owned 100% by BP. This transaction is expected to close in the third quarter of 2010.
Source : Press Release