Sept. 2,
2010, Toronto – SunOpta Inc., a global company focused on natural, organic, and
specialty foods and natural health products, has sold SunOpta BioProcess Inc.
(SBI) to Mascoma Corporation. The combination brings together SBI's fibre
preparation and pretreatment technology with Mascoma's consolidated
bioprocessing technology to create a company with comprehensive capabilities
for converting nonfood cellulose (wood chips, energy crops, and organic solid
waste) into ethanol and high-value co-products.
The
combination of Mascoma and SBI makes a company that is well positioned to
achieve the industry's objective of low-cost, sustainable production of
transportation fuels from nonfood biomass. By integrating SBI's
state-of-the-art fibre preparation and pretreatment technology (the upstream
component of cellulosic ethanol production) with Mascoma's consolidated
bioprocessing technology (the downstream component of cellulosic ethanol
production), the new company brings together two essential core technical
competencies. In addition, the combined entity will have operational presence
in both the United States and Canada, and an extensive intellectual property
position in the cellulosic biofuels sector.
The
transaction has received all necessary corporate approvals and will be funded via
a combination of preferred and common shares in Mascoma. The combined company
will be approximately 73% owned by existing Mascoma shareholders, approximately
18% by SunOpta, and the balance by other SBI shareholders. Jeremy Kendall,
chairman of SunOpta and former chairman of SBI, will join Mascoma's board of
directors. SBI will operate as Mascoma Canada, a wholly owned Canadian
subsidiary of Mascoma.
Mascoma,
through its affiliate Frontier Renewable Resources LLC, is currently developing
a commercial-scale production facility in Kinross, Michigan. The facility is
based on technologies developed in Mascoma’s laboratories in Lebanon, New
Hampshire, and operating in its 57,000 square-foot demonstration facility in
Rome, New York. The facility will also incorporate technologies developed by
SBI from its pilot operations in Waterdown and Brampton, Ontario.
Steve
Bromley, president and CEO of SunOpta commented, "This transaction allows
SunOpta shareholders to continue to participate in the commercialization of
low-cost biofuels and xylitol through an equity investment in Mascoma. More
importantly, it allows SunOpta to realize on its stated objective to focus on
its core value-added natural and organic foods business."
|
