BASF buys enzyme company active in ethanol industry
by Jeff Gelski
LUDWIGSHAFEN, GERMANY — BASF Corp. has agreed to buy all the outstanding shares of common stock of Verenium Corp., a biotechnology company based in San Diego. Verenium is active in enzymes designed for use in the processing of grains into ethanol production as well as enzymes used in the animal health and nutrition industry and the oilfield services industry.
The boards of directors of both companies have approved the transaction. BASF Corp. has agreed to pay $4 per share. Based on all outstanding shares and including all net financial liabilities, the value of the transaction would be about $62 million. BASF Corp.’s offer is 56% above the volume-weighted average share price for Verenium’s shares in the six months before the deal was announced.
The offer is subject to customary closing conditions. BASF will use operating cash to finance the transaction, which is expected to close in the fourth quarter.
According to BASF Corp., combining Verenium’s scientific and technological experience with BASF’s enzyme activities and its global access into markets will strengthen BASF’s footprint in the enzyme market. BASF Corp., Florham Park, N.J., is a U.S. affiliate of Ludwigshafen-based BASF.