Bio-succinic acid company BioAmber Inc. completed its Series C round of financing with net proceeds of $30 million. The financing was closed in two tranches; a first tranche of $20 million on 4 November 2011 with existing investors Naxos Capital, Sofinnova Partners, Mitsui & Co. Ltd. and the Cliffton Group, and a second tranche of $10 million on 6 February 2012 with specialty chemicals company LANXESS. All of BioAmber’s Series B investors participated in the Series C financing.
The investment by LANXESS is the culmination of a strategic collaboration in the field of renewable, phthalate-free plasticizers. BioAmber and LANXESS are jointly developing phthalate-free plasticizers and expect to begin sampling succinic-based plasticizers in 2012. The companies are also collaborating in Sarnia, Ontario, on the establishment of BioAmber’s first world-scale bio-succinic acid manufacturing facility. LANXESS is owner of the site and will provide BioAmber with utilities and services needed to operate the facility.
Concurrent with the investment, LANXESS will be joining the BioAmber board of directors and has named Jorge Noguiera, the head of LANXESS’ Functional Chemicals business unit, as its board representative.