Givaudan, the world’s largest fragrance and flavors supplier, is acquiring certain cosmetic ingredients from California-based biotechnology player Amyris, including its sugarcane-derived squalane, a sustainable alternative to that found in deep-sea shark livers.
Givaudan and Amyris have signed a long-term partnership agreement under which Amyris will continue to manufacture ingredients for Givaudan to use in cosmetics, as well as provide access to their innovation capabilities. Givaudan will become the commercialization partner for future sustainable beauty ingredients.
Ingredients changing hands are Neossance Squalane, Neossance Hemisqualane and CleanScreen. The terms of the deal include a combination of an upfront cash consideration and a performance-based earnout, along with a long-term manufacturing agreement.
“We share the same values with Givaudan, offering sustainable consumer products to improve people’s life while protecting the environment. Today we are reaching a major new step in our commercial partnership that we are very proud of,” said John Melo, Amyris president and chief executive officer. “Our technology and biomanufacturing capabilities deliver truly differentiated sustainable ingredients that are what consumers are demanding and enable our partners to lead in their markets. This transaction is a major step forward in funding our growth and enabling us to reach operating profitability.”
As well as an ingredients business, the Emeryville, California-based Amyris owns a number of celebrity beauty brands, including Naomi Watts’ Stripes, Rose Inc. with model Rosie Huntington-Whiteley, JVN with “Queer Eye” star Jonathan Van Ness, Costa Brazil with former Calvin Klein designer Francisco Costa, For You with actress Tia Mowry and its newest partnership with soccer legend David Beckham. Outside of the celebrity world, it has Biossance and EcoFabulous.
Of the deal, Markus Rassmann, head of active beauty at Givaudan, added: “Today, we have the widest offering of biotech cosmetic ingredients on the market. We are proud to expand our Active Beauty portfolio with these key active cosmetic ingredients. They represent unique added value in answering our customers’ expectations for innovative, sustainable and efficient beauty solutions.”
Shares in Amyris closed down 0.7 percent to $1.37.