New Renewable Specialty Chemicals Company to Tap $500+ Billion Global
Market
PASADENA, CA--(Marketwire - March 25, 2008) - Materia, Inc., a
catalyst technology company and Caltech spin-off, announced today the
creation and independent financing of a new company that builds on
technology developed by Materia in partnership with Cargill,
Incorporated. The new entity, named Elevance Renewable Sciences,
Inc., will harness the potential of natural oils combined with
Materia's Nobel Prize winning metathesis technology to aggressively
grow in the $500 billion specialty chemicals market. Emerging from
collaboration between Materia and Cargill that started in 2004 after
receiving a $1.8 MM matching grant from the U.S. Department of
Energy, Elevance was recently formed and secured more than $40
million in venture capital led by investments from TPG STAR, L.P. and
TPG Biotechnology Partners II, L.P. The new company expects to
generate over $1 billion in sales by 2016.
Elevance develops and commercializes value-added chemicals and
materials by applying Materia's metathesis technology to low-cost
renewable oils (e.g., soy, canola, corn, etc.). This Nobel Prize
winning catalyst technology continues to be developed by Materia and
the laboratories of Nobel Laureate Dr. Robert H. Grubbs of The
California Institute of Technology. Elevance already has a strong
foundation producing commercial grade waxes that are sold on a global
basis today, often under the name NatureWax®, and plans to quickly
expand these offerings with functional oils and anti-microbials in
the near term and lubricants, additives, and other chemicals closely
thereafter. The company has recruited a world class management team
and Board led by K'Lynne Johnson, who most recently led a $3B
division of Innovene and has held executive positions within BP and
Amoco. Cargill and Materia will stay involved as commercial partners
as well as investors. Elevance expects to continue to establish
collaborative partnerships in the marketplace to accelerate the
development of novel products, facilitate their cost effective
manufacture, and rapidly take them to market.
"Elevance was founded to create a next generation specialty chemical
company that can leverage multiple feedstocks such as soy, canola and
corn," said K'Lynne Johnson, CEO. "Our technology is not a single
solution, but a broad, enabling one that will allow Elevance to
create a wide range of performance advantaged specialty chemicals
based on renewable raw materials that also are friendlier to the
environment than the existing crude oil derivatives."
"Elevance is based on cutting edge yet well established technologies
and is quickly moving new products into the marketplace," said Mike
Giardello, CEO of Materia. "In addition, Elevance has the advantage
of four years of process improvement and commercialization experience
with tremendous potential for further advancement within the
specialty chemicals industry. We believe this transaction further
validates the commercial potential of Materia's catalyst technology
and its value in the global marketplace."
About Materia
Materia was founded in 1998 to commercialize olefin metathesis
catalyst technology. This Nobel Prize winning, green technology
enables chemical compounds to be synthesized with greater efficiency,
under less stringent reaction conditions, and with reduced byproducts
and hazardous waste. As stated by the Royal Swedish Academy of
Sciences when awarding the 2005 Nobel Prize, "metathesis is an
example of how important basic science has been applied for the
benefit of man, society, and the environment." For more information,
visit: www.materia-inc.com.
Contact:
John Kibler
Director, Corporate Development
jkibler@materia-inc.com
626.584.8400
