Date Closed

September 1, 2010

Lead Office

Montréal

Value

51.00 Million USD

On September 1, 2010, Mascoma Corporation announced the acquisition of SunOpta BioProcess Inc. (SBI), a division of SunOpta Inc. This combination brings together the world-leading fiber preparation and pretreatment technologies of SBI and the world-leading consolidated bioprocessing (CBP) technology of Mascoma, to create a company with comprehensive capabilities for converting non-food cellulose (wood chips, energy crops and organic solid waste) into ethanol and high value co-products.

The acquisition combines the leading bio-chemical platform companies in Canada and the United States, resulting in a company that is well-positioned to achieve the industry’s objective of low-cost, sustainable production of transportation fuels from non-food biomass. By integrating SBI’s state-of-the-art fiber preparation and pretreatment technology (known as the upstream component of cellulosic ethanol production) with Mascoma’s consolidated bioprocessing technology (known as the downstream component of cellulosic ethanol production), the new company brings together the two core technical components essential for the effective conversion of non-food cellulose into ethanol and high value co-products. In addition to the technical synergies, the combined entity will have the leading intellectual property position in the cellulosic biofuels sector, extensively covering both pretreatment and consolidated bioprocessing technologies.

Both SBI and Mascoma have made significant progress towards commercialization and collectively have development partners in the US, Canada, China, Brazil and South Africa, all of which will benefit from the combination. In early 2010, SBI announced a major contract to supply its fiber preparation and pretreatment technology to one of the largest operators in the new energy sector in China.

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, Ontario and Brampton, Ontario.

Mascoma, headquartered in Lebanon, New Hampshire,  is a U.S. biofuel company that produces cellulosic ethanl made from wood and switchgrass.

SunOpta Bioprocesses, headquartered in Brampton, Ontario, is a leading global company focused on natural, organic and specialty foods and natural health products.

McCarthy Tétrault LLP represented Mascoma, the acquiror, with a team led by Clemens Mayr.