BASF to Acquire Verenium For $62M to Strengthen Enzyme Position

23 Sep 2013 --- BASF has entered into an agreement to commence a cash tender offer for all of the outstanding shares of common stock of the biotechnology company Verenium Corporation for US$4.00 per share.

Based on all outstanding shares and including all net financial liabilities, the enterprise value would be approximately US$62 million (approximately €48 million). Verenium is based in San Diego, California, and generated sales of US$57 million in 2012.

The offer corresponds to a premium of 56 percent above the volume-weighted average share price for Verenium’s shares in the six months prior to announcement of the transaction. The tender offer is subject to customary closing conditions, including the acquisition of a majority of Verenium’s shares outstanding as of the closing of the tender offer. The acquisition is expected to close in the fourth quarter of 2013. BASF will finance the transaction out of operating cash.

The transaction has been unanimously approved by the Boards of Directors of both companies. Each of the directors and certain officers of Verenium have entered into support agreements and will tender all their shares.

Enzymes are proteins that act as catalysts, enabling or accelerating biological and chemical processes. They are used in the development of sustainable solutions in a variety of applications, e.g. detergents, human and animal nutrition. Combining Verenium’s scientific and technological excellence with BASF’s enzyme activities and its global access into all relevant markets will strengthen BASF’s footprint in the strategic enzyme growth market.

Verenium markets 10 industrial enzymes serving what it says are high-growth segments of the $3 billion global industrial enzyme market, including Phyzyme® XP phytase, an animal health and nutrition product. Phyzyme XP phytase, developed in collaboration with DuPont Industrial Biosciences (formerly Danisco Animal Nutrition), is designed to improve the digestibility of phosphorus and other nutrients naturally contained in animal feed, enabling food producers to reduce feed costs.

Other markets for Verenium enzymes include grain processing, oil field services, and other industrial processes.

Verenium generated $57 million in sales last year, compared with €72.1 billion (about $97.6 billion) for BASF.