M&As: Lummus invests in PHA maker RWDC Industries; Biesterfeld acquires composites maker Aerontec to expand in Africa

Process technology provider Lummus Technology says it has taken a lead investor position in RWDC Industries' convertible bond round, further strengthening the partnership between the two companies to bring polyhydroxyalkanoates (PHA) to the global market. This strategic investment marks a significant milestone in commercialisation of PHA, a biodegradable and environmentally safe alternative to petroleum-based plastics that can help mitigate the accelerating health concerns associated with persistent plastics and microplastics in the environment and support the development of a circular economy.

The convertible bond round remains open to select investors through July 2024.

Founded in 2016, RWDC Industries is a biotechnology company that develops Solon PHA.

Since signing a binding Joint Development and Commercial Cooperation Agreement in September 2023, Lummus and RWDC have made substantial progress in their shared mission to accelerate worldwide adoption of PHA and prepare the technology for global licensing. The engineering phase of RWDC's first commercial-scale PHA facility is nearly complete, with detailed engineering and preconstruction activities set to be finalised in the coming months.

Lummus' lead investment in RWDC's convertible bond round will enable completion of these final stages, targeting groundbreaking of the facility in early 2025.

"Lummus' investment in RWDC is a testament to our unwavering commitment to commercialising PHA and advancing the circular economy of the polymer industry," said Leon de Bruyn, President/CEO, Lummus Technology. "By combining our expertise in process technology with RWDC's innovative PHA production capabilities, we are poised to make a significant impact on the world's transition to sustainable and more carbon neutral materials."

"Lummus' support as the lead investor in our convertible bond round is a major step forward for RWDC and the future of PHA," said Dr. Daniel Carraway, Chief Executive Officer, RWDC. "This investment not only accelerates our journey towards construction of our first commercial-scale PHA production facility but also validates the immense potential of our technology in addressing the global challenge of plastic pollution."

Meanwhile, Germany’s Biesterfeld Group has acquired Aerontec, a South African supplier and distributor of advanced composite materials and related technology. The closing was completed today. Through this transaction, the Biesterfeld Group has become the 100% shareholder  of  Aerontec  Pty  Ltd.  Biesterfeld  is  continuing  its  geographical  expansion,  laying  the foundation for the long-term expansion of its market position in a highly attractive region, not only in the composites sector but beyond it too.

The parties have agreed not to disclose details of the transaction.

Aerontec Pty Ltd, founded in 2002, has developed into a distributor of advanced composite materials in South Africa. Aerontec´s product offering includes an extensive range of materials especially for the marine, transportation,  consumer  goods  and  aerospace  industries.  The  company  has  certified  warehousing  and distribution facilities in Cape Town, Johannesburg, Jeffreys Bay and Durban.

Dirk J. Biesterfeld, Chairman of the Supervisory Board of Biesterfeld AG, explains: "The sub-Saharan region is of high interest for Biesterfeld. With this acquisition, we are not only pursuing our global growth strategy but have also gained a great team, which shares the same goals and values that we hold at Biesterfeld. I welcome Graham Blyth and all new colleagues as part of our Biesterfeld family. We are looking forward to a successful future together."

Stephan  Glander,  CEO  of  Biesterfeld  AG,  adds:  "Founder  Graham  Blyth  and  his  team  have  built  a  very successful,  fast-growing  company,  which  combines  distribution  and  logistics  with  outstanding  technology expertise and differentiated services in composites. That is why they are a perfect match with our strategy of geographic expansion and an even stronger focus on technology and consultancy-driven businesses. We look forward to building on Aerontec´s success, working together to develop markets and providing customers with even more value-added products and services."

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