Nikkol partners with Amyris in cosmetic JV

Japan-based cosmetic specialty chemical firm Nikkol Group is establishing a cosmetic ingredient joint venture (JV) with industrial bioscience firm Amyris.

Nikkol will purchase 50% of the Amyris neossance business for approximately $20m. It will pay $10m of the price upfront and the remaining $10m will be structured as an earn out over the first three years of the JV operations.

Amyris' president and chief executive officer John Melo said: “Nikkol is an ideal partner for this joint venture and is the leading channel partner for our squalane business.

“This agreement is another key step among several in our stated plan to build greater value for our business, and ensure access to partner-driven growth capital while positioning the company to significantly expand product sales.

"This aligns with our strategy of focusing our business on partnering with the world’s leading companies to accelerate our product sales growth while lowering our operating costs.

"We expect squalane sales through to end customers to continue growing at better than 50% annually while our expenses will be reduced by over $1.5 million annually as a result of this partnership.”

Nikkol distributes cosmetic ingredients of Amyris in Japan and also helps the firm to improve business.

Nikkol Nikko Chemicals' president and chief executive officer Shizuo Ukaji said: “Nikkol has been involved in the sugarcane-based squalane business since the product’s inception by Amyris and we believe this is an opportune time to join forces.

“By working together, we believe the additional financial, marketing, innovation, and business development synergies will lead to a significant expansion in market applications.”

It is expected that Nikkol’s existing presence in the personal care ingredients sector will aid the operations of the JV through improved sales and market position.