DSM is buying Amyris Brasil from its long-term partner Amyris for $58 million. The acquisition includes the Brotas 1 production plant in Sao Paulo, Brazil, and intellectual property related to farnesene, a bio-based key intermediate for many applications.

The deal also includes an additional value share arrangement over a three-year period amounting to $37.5 million. The acquisition, which is subject to the usual closing conditions, is expected to complete in the next few months.

Brotas 1 produces about 24,000 t/y of farnesene and provides DSM with an abundant availability of sugar cane-based raw materials for its pipeline of bio-based products. DSM said it plans to optimize the site’s operational performance.

The Dutch life sciences group added that it would honor existing supply agreements to both Amyris and other parties, including the supply of specialty compounds to Amyris until it starts up a second facility, Brotas 2, which will produce specialty, high-performance ingredients.

Amyris said the sale will allow it to accelerate the construction of Brotas 2, as well as complete its plant in Sao Martinho to focus on sweeteners. “The combination of these actions provides us the manufacturing footprint to meet our current demand through the next three to five years and to manage this within our funding constraints,” said John Melo, president and CEO of Amyris.

The alliance between the two companies started in May of this year, when DSM made an initial equity investment of $25 million in Amyris in return for a 12% stake and a seat on the board. In August, Amryis announced a second tranche of $50 million in equity funding, with another $25 million from DSM – which gained a second seat on the board – and $25 million from healthcare investment firm Vivo Capital. Since then, DSM and Amyris have launched a number of product development collaborations.