BioAmber, a US-based converter of feedstocks into chemicals, has closed a $30m series C round, the first tranche of which was raised three months ago, shortly before it filed for an initial public offering (IPO) that could raise up to $150m. Investors include conglomerate Mitsui & Co. and chemicals group Lanxess, which provided the second tranche, worth $10m, on 6th February.
Mitsui was joined in the $20m November tranche by venture capital firm Sofinnova Ventures, investment group Naxos Capital Partners and investment advisor the Clifton Group.
The round brings BioAmber’s total funding to $87m since the company was spun-off from nutritional supplements company Diversified Natural Products at the end of 2008, with prior investors including Samsung’s corporate venturing fund, Samsung Ventures, and automotive manufacturer Toyota.
The investment by Lanxess is largely strategic, with the two firms having launched a partnership in October that will see them collaborate on the development of plasticizers. BioAmber and Lanxess had been jointly assessing the plasticizer market over the two preceding years.
The two are also jointly involved in the establishment of a large-scale manufacturing facility in Sarnia, Canada that will produce the bio-succinic acid necessary for the plasticizers. Lanxess will own the site, and will provide the utilities to BioAmber for operation.
Sandy Marshall, president of Lanxess Canada, said: "Lanxess is actively engaged in leveraging its Sarnia site to establish the largest bio-industrial park in Canada, offering land, energy and infrastructure for the development of new bio-industrial chemicals. We are excited to be working closely with BioAmber to anchor the Bio-industrial Park, and this investment is a natural extension of our collaboration."
In conjunction with the investment, Jorge Nogueira, head of Lanxess’ functional chemicals business unit, will join BioAmber’s board of directors.
Nogueira said: "Our investment in BioAmber shows our commitment to launching a new generation of plasticizers that satisfy regulatory requirements and can also score in terms of sustainability,"
BioAmber is yet to file post-series C details of its stockholders’ shares in the company. At the time of the November filing, its largest shareholders were Naxos Capital (33.5%), Sofinnova (30.9%) and Mitsui (13%).