The $3 billion industrial enzyme industry now speaks German: BASF takes Verenium

Verenium Headquarter in San Diego, California
Verenium Headquarter in San Diego, California

BASF grows in biotechnology field and closes the gap on market leaders DuPont and Novozymes in the $3 billion industrial enzyme industry. The German world’s leading chemical company yesterday announced that it has successfully completed the previously announced tender offer to purchase all outstanding shares of common stock of Verenium Corporation, San Diego, California, for US$4.00 per share in cash. The tender offer expired at 9:00 a.m. Eastern Standard Time (USA) on October 31, 2013. As of the expiration of the tender offer, 11,337,044 Verenium shares were validly tendered and not withdrawn in the tender offer, representing approximately 71% of Verenium’s outstanding shares, according to the depositary for the tender offer. Based on all outstanding shares and including all net financial liabilities, the enterprise value would be approximately US$62 million (approximately €48 million).

“We thank all shareholders of Verenium who have been supportive of our offer. The acquisition will strengthen our position in the fast growing enzyme market,” said Michael Heinz, member of the Board of Executive Directors of BASF SE and responsible for the Performance Products segment.

The condition to the tender offer that a majority of Verenium’s outstanding shares be validly tendered has been satisfied. BASF has accepted for payment and will promptly pay for all validly tendered shares. BASF expects to complete the acquisition of Verenium through a merger under Section 251(h) of the General Corporation Law of the State of Delaware. All remaining eligible Verenium shares will be converted into the right to receive US$4.00 per share in cash, without interest and less any required withholding taxes, the same price that was paid in the tender offer. Following completion of the merger, Verenium shares will cease to be traded on the NASDAQ Global Market.

“We are now looking forward to welcome Verenium’s employees to BASF,” said Heinz. A detailed integration plan will be developed in a discovery phase after closing. BASF expects to start with the integration of Verenium in the first quarter of 2014.

Verenium is focused on the development and commercialization of economical, eco-sensitive and bio-based solutions for improving industrial processes. The company has developed, either independently or through collaborations, a number of high-performance enzyme products and product candidates for use in industrial processes. Companies in a variety of processing industries are replacing harsh industrial chemicals and processes with clean, cutting-edge enzyme solutions. Verenium’s breakthrough enzyme products minimize pollution by reducing or replacing harsh chemicals used in industrial processes while also enhancing customer efficiency.

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