Aemetis agrees to buy cellulosic tech specialist Edeniq
Ethanol production facility in the US. Featured Image: Jim Parkin/Shutterstock.com
US biofuels and biochemicals maker Aemetis Inc (NASDAQ:AMTX) said Thursday it has agreed to acquire cellulosic ethanol technology company Edeniq in a stock-plus-cash deal.
Edeniq's innovations unlock cellulosic and starch sugars through a combination of mechanical and biological processes, and can be easily integrated into existing corn ethanol plants, Aemetis noted. Edeniq has 29 of its Cellunators installed in 6 US ethanol plants and has also signed several license agreements for its Pathway technology, which combines the mechanical Cellunator equipment with cellulase enzymes to turn corn kernel fiber into cellulosic ethanol.
In 2015, Visalia, California-based Edeniq generated around USD 20 million in revenue and USD 6 million in earnings before interest, tax, depreciation and amortisation (EBITDA).
Under the deal, Aemetis expects to issue between one and two million shares and to pay up to USD 20 million, or up to USD 18 million, in cash over the next five years.
"The acquisition of Edeniq will further Aemetis' plan to lead the deployment of technology to transition traditional biofuels plants into the production of valuable advanced biofuels, upgrading the existing infrastructure found at the 210 ethanol production facilities operating throughout the United States," said Aemetis chairman and chief executive Eric McAfee. He also said that Aemetis expected to enhance the technology to expand cellulosic feedstocks and to increase yields.
The deal is expected to complete in the second quarter.
Aemetis recently said it will deploy Edeniq's Pathway technology at its 60-million-gallon (227 litre)-per-year ethanol plant in Keyes, California.