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Covation Biomaterials LLC (CovationBio) announced that the company has agreed to sell its interest in Primient Covation LLC, a producer of 100% bio-based 1,3 propanediol (BioPDO). Following the transaction, Primient will continue to supply CovationBio with BioPDO under a long-term supply agreement for the production of Sorona® polymer. Moelis & Company acted as the exclusive financial advisor to CovationBio on this transaction.
Along with this shift, CovationBio is also preparing for the commercialization of its latest product, bioPTMEG, this year. It is a bio-based polyether glycol derived from corn cobs and serves as an alternative to traditional petroleum-based polytetramethylene ether glycol. It is for applications that use spandex, polyurethanes and thermoplastic elastomers, such as athletic and performance apparel, footwear components, industrial elastics, and automotive parts and accessories.
“The BioPDO business was originally introduced in Sorona® polymer over 25 years ago. It’s a mature platform that continues to grow and be successful. As part of our long-term strategy to reaffirm our commitment to new technologies, we’ve identified BioPDO as one part of a larger ecosystem of sustainable materials. This exit allows us to make a deeper investment into the next generation of sustainable material innovations,” says Steven Ackerman, Ceo of CovationBio.
“As we look ahead, we’re excited about the opportunity to commercialize solutions that reduce friction for our downstream value chain partners as they look to integrate sustainable materials into their production. As a drop-in replacement for traditional PTMEG, bioPTMEG can be seamlessly integrated as a bio-based raw material option without major process changes,” he says.
For more information, visit covationbio.com.