Avantium sells Ray Technology IP to UPM
- Avantium sold Ray Technology IP to UPM, covering the patent portfolio and invention disclosures developed up to end-2023 for production of bio‑based MEG and MPG.
- Consideration: €2.7M cash — €2.0M to partially repay debt to ABN AMRO, ASN, ING, Rabobank and InvestNL, €0.7M for dismantling the idle Ray pilot plant and close‑out costs.
- Avantium paused further Ray development because commercial scale-up would require substantial additional investment and is refocusing on commercialisation and licensing of its FDCA/PEF platform.
- Avantium no longer has employees dedicated to Ray Technology and the transaction has no employment consequences.
Transaction
Avantium has sold the intellectual property for its Ray Technology to UPM; the assets comprise the patent portfolio and invention disclosures developed up to end‑2023.
Technology scope
The Ray IP covers production of bio‑based mono‑ethylene glycol (MEG) and mono‑propylene glycol (MPG), which are used in packaging, textiles and industrial fluids; bio‑based MEG is an input for PEF production.
Financial terms and use of proceeds
The consideration is €2.7 million in cash, with €2.0 million allocated to partial repayment of debt facilities provided by a consortium of lenders (ABN AMRO, ASN, ING, Rabobank and InvestNL) and €0.7 million for dismantling the idle Ray pilot plant and other close‑out costs.
Rationale and operational impact
Avantium paused further Ray development in 2023 because commercial scale‑up would have required substantial additional investment and is refocusing on commercialisation and licensing of its FDCA/PEF technology; there are no employees remaining dedicated to Ray Technology and the transaction has no employment consequences.
Source: Avantium